AIMA has welcomed the UK Financial Conduct Authority (“FCA”) proposals to simplify and merge the three remuneration codes applying to asset management firms and have a single code.

However, the FCA could go further and realign the UK with other major asset management jurisdictions such as the USA, United Arab Emirates, Switzerland and Hong Kong. These major competitors rely on high-level rules to take into account the effect of remuneration instead of the very detailed requirements currently in force in the UK and European Union.