UCITS V And Proposals To Cap Remuneration For Fund Managers

The European Parliament has voted at a plenary session on the draft UCITS V directive.

On 3 July 2013, the European Parliament (the "Parliament") took a vote at a plenary session on the draft UCITS V directive ("UCITS V"). At that plenary session a number of amendments to the UCITS V text were adopted and some of the proposals previously put forward by the Parliament's Economic and Monetary Affairs Committee ("ECON") were rejected.

UCITS V proposes the introduction of remuneration policies and practices for those in senior management and those who are considered to have a material impact on the risk profile of a UCITS when making decisions. The purpose of this proposal is to ensure that such policies and practices are in line with the aim of sound risk management and that decision taking inconsistent with the UCITS's risk profile is avoided.