MEPs vote to cap fund manager bonuses

European politicians have voted to reform the bonus structure of fund managers, a move which puts the UK at a "competitive disadvantage" and could damage shareholder value, according to PwC.

The European Parliament's economic and monetary affairs committee voted in favour of the proposals this morning, with a full Parliamentary vote and debate the next steps in the process. Tim Wright, director of PwC's consulting advice to the asset management industry, said proposals from Brussels on UCITS V aiming to enforce a maximum 1:1 ratio of bonus to salary pose "real risks" to major UK asset managers. The proposals also advocate paying half of any bonus in the form of shares or units in a firm's own funds. Wright said the new regulations would put Europe at a competitive disa...