ESMA has published its final report on guidelines on sound remuneration policies under UCITS V and the AIFMD. ESMA has had to balance the alignment of the UCITS Remuneration Guidelines with the AIFMD Remuneration Guidelines, with the result that ESMA has suggested further legal clarity on the application of the proportionality principle under the UCITS guidelines. The guidelines on sound remuneration policies will apply from 1 January 2017, provided however that the current AIFMD Guidelines will not be amended to bring them into line with the UCITS Guidelines pending clarification on the application of the proportionality principle.