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Benedicte Gravrand, Opalesque London:

With the restraints on bank bonuses and capital requirements on the European level, and the new bank levy and higher capital gains tax in the UK, many have speculated over the past week that hedge funds would be somehow dragged along in these more stringent regimes. But this still remains to be seen.

EU's Capital Requirements Directive, bank bonuses Last week, we heard that the European Parliament had passed a vote on the amendments to the Capital Requirements Directive (CRD) regarding bank and building society's bonuses whereby bankers are to receive only 30% in cash with the rest being deferred by 3 to 5 years.

The CRD implements the provisions of the Basel II capital framework in the European Union, according to global law firm Morrison & Foerster. EU lawmakers reviewed it after the credit crisis. The only amendment adopted so far is Directive 2009/111/EC amending the CRD with regard to banks affiliated to central institutions, certain fund items, large exposures, supervisory arrangements, and crisis management. EU member states must transpose the changes into their national laws by October this year and implement them beginning on 31 December 2010.

The new Basel III rules are expected to be finalised by the end of the year and implemented in January 2012, and so further changes later th......................

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