Did you know that UK hedge fund managers a.k.a alternative investment fund managers (AIFMs) are required to establish, implement and maintain remuneration policies for code staff?
Their remuneration policies must promote sound and effective risk management, and must not encourage risk-taking that is inconsistent with the risk profile of the AIFM, or the alternative investment funds (AIFs) that they manage.
So who are code staff?
Code staff comprise those staff whose activities have a material impact on the risk profiles of the AIFMs or the AIFs that the AIFM manages. This includes senior management, risk-takers, control functions, and any employees receiving total remuneration that takes them into the same remuneration bracket as senior management and risk-takers.
What is remuneration?
Remuneration is defined in the Glossary to the Handbook as any form of remuneration, including salaries, discretionary pension benefits, and benefits of any kind. The principles of the Code apply to remuneration of any type received by the AIFM, or given to the AIF directly, including carried interest or the transfer of shares made to the benefit of AIFM staff.
