The AIFMD remuneration rules: impact on UK alternative investment fund managers and their delegates

The Alternative Investment Fund Managers Directive (AIFMD) requires alternative investment fund managers (AIFMs) within its scope to comply with rules on remuneration. The AIFMD also requires the European Securities and Markets Authority (ESMA) to develop guidelines on sound remuneration policies under AIFMD (the "Guidelines"), which it published on 3rd July 2013.
The Guidelines cover a number of substantive areas such as the definitions of remuneration and identified staff, the concept of proportionality, the composition and role of remuneration committees, payment in units, shares or other instruments, and disclosure. There are also specific guidelines related to dividends or distributions made to owners of an AIFM and requirements on the AIFM when portfolio or risk management is delegated by it to a third party (a "Delegate").
In the UK, the Financial