CP12/32: Implementation of the Alternative ... - BVCA admin

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[Note: paragraph 1(c) of Annex II of AIFMD] Page 53 of 91 Appendix 1 19B.1.8 R An AIFM must ensure the implementation of the remuneration policy is, at least annually, subject to central and independent internal review for compliance with policies and procedures for remuneration adopted by the governing body in its supervisory function. [Note: paragraph 1(d) of Annex II of AIFMD] 19B.1.9 R (1) An AIFM that is significant in terms of its size, internal organisation and the nature, the scope and the complexity of its activities must establish a remuneration committee. (2) The remuneration committee must be constituted in a way that enables it to exercise competent and independent judgment on remuneration policies and practices and the incentives created for managing risk. (3) The chairman and the members of the remuneration committee must be members of the governing body who do not perform any executive function in the AIFM. (4) The remuneration committee must be responsible for the preparation of decisions regarding remuneration, including those which have implications for the risk and risk management of the AIFM or the AIF concerned and which are to be taken by the governing body in its supervisory function. [Note: paragraph 3 of Annex II of AIFMD] AIFM Remuneration Principle 4: Control functions 19B.1.10 R An AIFM must ensure that employees engaged in control functions are compensated in accordance with the achievement of the objectives linked to their functions, independent of the performance of the business areas they control. [Note: paragraph 1(e) of Annex II of AIFMD] 19B.1.11 R An AIFM must ensure the remuneration of the senior officers in the risk management and compliance functions is directly overseen by the remuneration committee, or, if such a committee has not been established, by the governing body in its supervisory function. [Note: paragraph 1(f) of Annex II of AIFMD] AIFM Remuneration Principle 5(a): Remuneration structures – assessment of performance 19B.1.12 R An AIFM must ensure that where remuneration is performance related, the total amount of remuneration is based on a combination of the assessment of
Page 54 of 91 Appendix 1 the performance of the individual and of the business unit or AIF concerned and of the overall results of the AIFM. When assessing individual performance, financial as well as non-financial criteria are taken into account. [Note: paragraph 1(g) of Annex II of AIFMD] 19B.1.13 R An AIFM must ensure that the assessment of performance is set in a multiyear framework appropriate to the life-cycle of the AIFs managed by the AIFM in order to ensure that the assessment process is based on longer term performance and that the actual payment of performance-based components of remuneration is spread over a period which takes account of the redemption policy of the AIFs it manages and their investment risks. [Note: paragraph 1(h) of Annex II of AIFMD] AIFM Remuneration Principle 5(b): Remuneration structures – guaranteed variable remuneration 19B.1.14 R An AIFM must not award, pay or provide guaranteed variable remuneration unless it; (1) is exceptional; (2) occurs only in the context of hiring new staff; and (3) is limited to the first year of service. [Note: paragraph 1(i) of Annex II of AIFMD] AIFM Remuneration Principle 5(c): Remuneration structures – ratios between fixed and variable components of total remuneration 19B.1.15 R An AIFM must set appropriate ratios between the fixed and variable components of total remuneration and ensure that: (1) fixed and variable components of total remuneration are appropriately balanced; and (2) the fixed component represents a sufficiently high proportion of the total remuneration to allow the operation of a fully flexible policy on variable remuneration components, including the possibility to pay no variable remuneration component. [Note: paragraph 1(j) of Annex II of AIFMD] AIFM Remuneration Principle 5(d): Remuneration structures – payments related to early termination 19B.1.16 R An AIFM must ensure that payments related to the early termination of a contract reflect performance achieved over time and are designed in a way that does not reward failure
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Consultation Paper CP12/32 Financia
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The Financial Services Authority in
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CP12/32 Implementation of the Alter
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Annex 2 List of consultation questi
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Annex 2 November 2012 CP12/32 Imple
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ALTERNATIVE INVESTMENT FUND MANAGER
Page 126 and 127: Annex A Making the Investment Funds
Page 128 and 129: Page 5 of 91 Appendix 1 (2) a descr
Page 130 and 131: 3.2.5 R An AIFM must, for each AIF
Page 132 and 133: Page 9 of 91 Appendix 1 (6) the agg
Page 134 and 135: Page 11 of 91 Appendix 1 (4) the id
Page 136 and 137: [Note: article 15(1) of AIFMD] this
Page 138 and 139: (1) a full scope UK AIFM of: (a) a
Page 140 and 141: Page 17 of 91 Appendix 1 (b) the re
Page 142 and 143: experienced; Page 19 of 91 Appendix
Page 144 and 145: Page 21 of 91 Appendix 1 by the fac
Page 146 and 147: Page 23 of 91 Appendix 1 3.11.5 G T
Page 148 and 149: (Own funds requirement). [Note: art
Page 150 and 151: supplements the meaning of financia
Page 152 and 153: instruments remain in its custody;
Page 154 and 155: supplementing this section] 4. Comm
Page 156 and 157: Annex B Amendments to the Glossary
Page 158 and 159: collective portfolio management fir
Page 160 and 161: Page 37 of 91 Appendix 1 non-listed
Page 162 and 163: BIPRU 730k firm Page 39 of 91 Appen
Page 164 and 165: … Page 41 of 91 Appendix 1 (e) (i
Page 166 and 167: esources only at excessive cost. Pa
Page 168 and 169: Single Market Directive … Page 45
Page 170 and 171: Page 47 of 91 Appendix 1 [Note: art
Page 172 and 173: Page 49 of 91 Appendix 1 7.1.7B In
Page 174 and 175: Page 51 of 91 Appendix 1 [Note: art
Page 178 and 179: [Note: paragraph 1(k) of Annex II o
Page 180 and 181: [Note: paragraph 1(r) of Annex II o
Page 182 and 183: Page 59 of 91 (2) the fixed overhea
Page 184 and 185: Page 61 of 91 Appendix 1 amount of
Page 186 and 187: Types of investment firm: BIPRU 50K
Page 188 and 189: The following text is new and is no
Page 190 and 191: Page 67 of 91 Appendix 1 (1) at the
Page 192 and 193: Page 69 of 91 Appendix 1 so that th
Page 194 and 195: TABLE 7.4 PART I A firm must calcul
Page 196 and 197: Note consistently in respect of any
Page 198 and 199: initial capital (see item 5) if the
Page 200 and 201: Form of qualifying subordinated loa
Page 202 and 203: Annex H Amendments to the Supervisi
Page 204 and 205: Descriptio n of data item Annual re
Page 206 and 207: … Data item SUP 16.12.12R, unless
Page 208 and 209: indicated otherwise. Data item Firm
Page 210 and 211: client assets … Page 87 of 91 App
Page 212 and 213: … Data item SUP 16.12.23R, unless
Page 214 and 215: FSA066 and FSA06 are added - see fo
Page 216 and 217: Liquid assets test 32 Liquid assets
Page 218 and 219: Professional negligence capital req
Page 220 and 221: is not listed, select ‘Other’.
Page 222 and 223: FSA067 Capital adequacy - supplemen
Page 224 and 225: PII capital requirement 5A This is
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External validations Validation Dat
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