On 23 July 2015 the European Securities and Markets Authority (“ESMA”) launched a consultation on proposed guidelines on remuneration under the UCITS V Directive. UCITS V requires UCITS management companies and self-managed investment companies to adopt remuneration policies and practices that are consistent with and promote sound and effective risk management and discourage disproportionate risk taking. The consultation paper sets out ESMA’s formal proposals for guidelines on the remuneration policies required by UCITS V (“UCITS Remuneration Guidelines”). The UCITS Remuneration Guidelines aim to provide guidance on issues such as proportionality, governance of remuneration, requirements on risk alignment and disclosure. The consultation paper also proposes a revision of the ‘Guidelines on sound remuneration policies under AIFMD (“AIFMD Remuneration Guidelines”), published on 3 July 2013.