AIFMD—Remuneration Code
AIFMD—Remuneration Code

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • AIFMD—Remuneration Code
  • What are the remuneration codes?
  • What is the AIFMD?
  • What is the AIFM Remuneration Code?
  • Which staff are covered under the AIFM Remuneration Code?
  • Which firms does the AIFM Remuneration Code apply to?
  • What is the definition of remuneration under the AIFM Remuneration Code?
  • What are the AIFM Remuneration Code principles?
  • What are the proportionality and disclosure requirements under the AIFM Remuneration Code?
  • Proportionality
  • more

BREXIT: The UK is due to leave the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For further guidance on the impact of Brexit on AIFMs, see Practice Note: Preparing for Brexit: AIFMD—quick guide.

What are the remuneration codes?

Following implementation on the Alternative Investment Fund Managers Directive (AIFMD) (Directive 2011/61/EU), together with the fourth Capital Requirements Directive (CRD IV), which came into effect 1st January 2014 in the UK with the Capital Requirements Regulation; the joint Financial Conduct Authority (FCA) and the Prudential Authority (PRA) policy statement (PRA PS12/15 / FCA PS15/16) issued June 2015, there are now five remuneration codes (together the 'Codes') set out in the FCA Handbook by which fund managers must abide.

The five applicable Codes contained in the FCA handbook are:

  1. the IFPRU Remuneration Code (SYSC 19A) together with FCA general guidance on proportionality SYSC 19A—see Practice Note: IFPRU Remuneration Code

  2. the AIFM Remuneration Code (SYSC 19B) together with FCA AIFM remuneration guidance.

  3. the BIPRU Remuneration Code (SYSC 19C) together with FCA general guidance on proportionality BIBRU SYSC 19C—see Practice Note: Remuneration Code for BIPRU firms

  4. Dual-regulated Firms Remuneration Code (SYSC 19D) together with FCA general guidance on proportionality for dual-regulated firms SYSC 19D—see Practice Note: Remuneration Code for Dual