Thursday 27 September 2012
IMA REMINDS ESMA THAT ASSET MANAGERS ARE NOT BANKS
In its response to ESMA’s (European Securities and Markets Authority) consultation paper “Guidelines on Sound Remuneration under AIFMD” the Investment Management Association (IMA) has re-iterated that asset managers are not banks and should not be treated as posing the same systemic risks. Any remuneration policies for asset management firms must take account of this important difference and be proportionate to any risks posed.
In addition, there is a patchwork of regulation on remuneration, meaning that many asset management firms will have to comply with not just one but four sets of EU guidelines. IMA favours instead a broader principles-based approach which would allow firms the flexibility needed to fit in with the circumstances in which they operate.
Guy Sears, IMA’s Wholesale Director, said:
“One of the roots of the financial crisis was the huge bonuses paid by banks for short-term highly risky transactions. This is in complete contrast to the more forward-looking incentive plans of asset managers whose aim is to reward longer-term profitability.
“It is right that remuneration plans should be regulated but this type of prescriptive approach misses the point.”
The full IMA response is available here.
For further information please contact:
Mona Patel, Head of Communications
020 7831 0898 or 07834 089332
About the Investment Management Association
- The IMA is the trade body for the UK's £4.2 trillion asset management industry (retail and institutional) which is one of the world's leading investment management centres.
- Our role is to represent the interests of the asset management industry to government and regulators both in the UK and internationally.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.