ESMA has published its final guidelines on sound remuneration policies under the Undertakings for the Collective Investment in Transferable Securities (UCITS V) Directive and the Alternative Investment Fund Managers Directive (AIFMD). The guidelines will apply to UCITS management companies and national competent authorities from 1 January 2017 and have previously been subject to consultation (see FReD 31 July 2015). ESMA has also written to the Commission, Council and EP on the proportionality principle and remuneration rules in the financial sector. In both publications ESMA discusses the difficulties in applying the principle of proportionality when drafting and finalising the guidelines. (Source: ESMA publishes UCITS remuneration guidelines and ESMA letter on proportionality and remuneration)