Bloomberg – Hedge-fund and private-equity managers may be asked to give back “more than 20 percent” of their bonuses under changes sought by two European Union lawmakers to draft rules governing the industry.
The Alternative Investment Fund Managers Directive, proposed by the European Commission earlier this year, would cost hedge funds and private-equity firms at least 4.6 billion pounds ($7.3 billion) to implement, according to a study by the U.K. Financial Services Authority. Regulators have said that the bonus culture in the financial services industry encouraged the excessive risk-taking that led to the global financial crisis.
