(1) An AIFM shall have remuneration policies and practices for the categories of staff referred to in paragraph (2) that are consistent with and promote sound and effective risk management and do not encourage risk-taking which is inconsistent with the risk profiles, rules or instruments of incorporation of each AIF it manages.
(2) The staff referred to in paragraph (1) are staff of the AIFM, including senior management, risk-takers, control functions, and any employees receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on the risk profiles of the AIFM or of any AIF it manages.
(3) An AIFM shall determine the remuneration policies and practices in accordance with Schedule 2.