Helping asset managers design and implement compliant remuneration structures to incentivise key individuals.

In the asset management industry retaining key individuals is fundamental, but compliance with the taxation and regulatory requirements around remuneration is equally important.

Implementing a compliant and attractive remuneration package for individuals that aligns their interests with investors underpins every asset management business. It has to be on a par, if not better, than the wider market has to offer, rewarding performance in the current year and in the future. Furthermore, it is vital that remuneration policies evolve with the firm and the individuals in the team. High performers are ambitious and ultimately want to share in the wider profits of the firm. Careful thought and planning on equity and succession planning is paramount, the risk of failure in your team can quickly become your competitor if not managed carefully.

How we can help:

  • Assist with designing a compliant remuneration and incentivisation strategy based on the bespoke requirements of the asset manager and the key individuals considering the implications for the individuals and for the business as a whole.
  • Advise on compliance of remuneration structures with both general and targeted anti-avoidance rules set out by HMRC including rules around partnership taxation and rules with a particular focus on asset managers.
  • Advise on whether the remuneration received across different jurisdictions still aligns with the current transfer pricing position of a business and is still at arm’s length. This is important when considering compliance with rules under both transfer pricing as well the profit fragmentation legislation.