On 23 July 2015, the European Securities and Markets Authority (“ESMA”) published its draft guidelines on the implementation of the UCITS V remuneration principles for consultation.  In the consultation, ESMA’s approach to the application of proportionality differs from that of the European Banking Authority (EBA) in its consultation on revised CRD IV remuneration guidance, with ESMA suggesting that the co-legislators may have envisaged the possibility that the application of proportionality could lead to the disapplication of certain of the remuneration principles.   

The consultation proposes that the guidelines on the UCITS V remuneration principles will largely follow the corresponding AIFMD guidelines, which is very helpful as this should ensure a largely consistent application of the two regimes at the member state level.   To read more from our Employment team, click here.