ESMA Final Report: Guidelines On Sound Remuneration Policies Under The AIFMD

Following the consultation paper dated September 28, 2012, the European Securities and Market Authority ("ESMA") published on February 11, 2013 its final report on guidelines relating sound remuneration policies under the AIFMD ("Remuneration Guidelines" or "Guidelines"). Such Guidelines introduces details of prudent remuneration policies and organisational structures which shall avoid conflicts of interests that may lead to excessive risk taking.

As the next step the Remuneration Guidelines will be translated into the official languages of the EU. Within two months of the publication of the translations on ESMA's website, competent authorities should confirm to ESMA whether they intend to comply with the Guidelines by incorporating them into their supervisory practise.