U.K. hedge funds got a shocker Thursday when they discovered the E.U. had written them into legislation to restrict banker pay. They knew their pay practices faced curbs under a separate directive, but nothing had been set in stone, and the other proposals wouldn't take effect for at least a couple of years.
Now, they're in the E.U. net from January, though it's still unclear how the rules will actually play out in the U.K. and elsewhere. Because the E.U. has left national regulators some leeway, the U.K.'s FSA could decide much of the legislation isn't relevant to hedge fund firms and other asset managers, or at least none but the very largest... Full article (subscription required): Source
