Movement of rich people
News this week is that everybody’s favourite economy stimulator, the EU, is now looking at legislation that will curb bonuses in the hedge fund and private equity business.
Here’s the link, but basically the
Stasi ESMA (European Securities and Markets Authority) have realised that banker bashing only targets one section of the financial markets and that there are other “senior executives” in London whose pay they want to “bring in-line” with the remuneration policies of the investment banks.
This is another totally unhelpful attack on the UK economy from EU, and if they go ahead I can see many funds simply upping sticks and relocating to the Caribbean or the Far East. Many funds are already domiciled, or at least partly based in offshore locations, and a vicious grab on their pay is simply likely to push them further abroad faster. The Government apparatchiks just don’t seem to understand that today each country is like a camping-site: they provide a patch of suitable ground and some basic amenities but ultimately you can pitch your tent anywhere. In the UK we are lucky to have one of three of the world’s leading global cities and we need to realise that this is precious thing and not some entitlement that can be abused according to the latest Brussel’s fad.
Now the FSA is trying to work out how these rules could be applied to the UK, so watch this space.