The Directive will bring significant changes to the reporting requirements around remuneration for many AIFMs. According to a recent KPMG survey of AIFMS, 45 percent of respondents said they had not yet considered how these new remuneration requirements would impact their businesses. These firms would be well-served to begin the process of developing comprehensive remuneration policies that will not only comply with the Directive, but also promoting sound and effective risk management.
  • The remuneration policies of financial institutions remaining high on the political agenda. This is not expected to change soon.
  • Remuneration policies need to be consistent with and promote sound and effective risk management.
  • KPMG is finding that many AIFMs don’t currently comply with any regulatory remuneration policy.
  • The risk profiles of funds need to be aligned with remuneration policies.
  • Legal structures of funds can impact this remuneration component.
  • How KPMG can help: KPMG member firms can develop a tailored, comprehensive remuneration policy, determine how much reporting and disclosure will be required, assess if there are any potential privacy issues, etc. We will create an improvement roadmap, conduct a gap analysis on requirements, set the stage for well-documented and transparent processes.

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Georges Bock

Global Sponsor of AIFMD
KPMG in Luxembourg

Heleen Rietdijk

Global Leader of AIFMD

KPMG in Ireland

AIFMD: Much ado about remuneration

Fund Views Video

KPMG's Georges Bock and Charles Muller discuss the substantial strategic impacts on asset managers of the AIFMD "Level 2" implementing measures that were released by the EU Commission on 19 December 2012.