The Investment Management Association wants Europe’s securities regulator to allow the buyside to take a principles-based approach to remuneration, rather than subjecting asset managers to the same prescriptive pay rules as banks.

In a letter published on Thursday in response to a consultation on remuneration guidelines under the Alternative Investment Fund Managers Directive, the trade body told the European Securities and Markets Authority that fund managers do not pose the same systemic risks as banks and should not be subject to the same type of strict remuneration rules.