Income Tax (Trading and Other Income) Act 2005 section 863L

The AIFMD remuneration guidelines

Section 863L defines the term "AIFMD remuneration guidelines" as used in the partnership profit allocation rules for alternative investment fund managers.

• The AIFMD remuneration guidelines are formally titled "Guidelines on Sound Remuneration Policies under the AIFMD", issued by the European Securities and Markets Authority on 3 July 2013 (reference ESMA/2013/232)
• This definition applies wherever the term is used in sections 863I to 863K of the Act
• Under these guidelines, certain AIFM firms must defer 40 to 60 per cent of key staff's variable remuneration for up to three to five years
• At least 50 per cent of variable remuneration must be paid in units, shares of the managed funds, or equivalent ownership interests, rather than in cash