European Parliament Votes On UCITS V Draft Text

On Wednesday 3 July, the European Parliament voted on the draft text of the Undertakings for Collective Investments in Transferable Securities (UCITS V) Directive. This Directive will introduce remuneration rules for UCITS fund managers.

Summary

The approved text has the following differences to the original proposal in relation to remuneration:

• The provision to introduce a variable remuneration cap of 100% of fixed remuneration has been removed altogether; and
• The minimum proportion of variable remuneration which must be deferred has been raised from 25% to 40%.

This brings the remuneration rules for UCITS fund managers in line with those under the Alternative Investment Fund Managers Directive ( AIFMD).