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* Improvements to investor protection measures are required for the main investment products bought by retail investors.

* Product information requirements and rules on product sales need to be improved and made more coherent.

* Financial institutions should strike an appropriate balance between the level of the core pay and the level of the bonus. The payment of the major part of the bonus should be deferred in order to take into account risks linked to the underlying performance through the business cycle.

* Performance measurement criteria should privilege long-term performance of financial institutions and adjust the underlying performance for risk, cost of capital and liquidity.

* Financial institutions should be able to claim back already paid bonuses, where data has been proven to be manifestly mis-stated.

* Remuneration policies should be transparent internally, clear and properly documented and contain measures to avoid conflicts of interest.

* Board members and other staff involved in the design and operation of remuneration policies should be independent.

* The remuneration policy should be adequately disclosed to stakeholders.

* Supervisors should ensure, using the supervisory tools at their disposal, that financial institutions apply the principles on sound remuneration policies to the largest possible extent and have remuneration policies consistent with effective risk management.

* In June, the European Commission will present proposals to revise the capital requirements directive to ensure regulatory capital adequately covers risks inherent in banks' trading book, securitisation positions and remuneration policies.

* The European Commission proposed a directive on alternative investment fund managers, which include the managers of hedge funds and private equity funds. This is the first attempt in any jurisdiction to create a comprehensive framework for the direct regulation and supervision in the alternative fund industry.

* Alternative investment fund managers within scope will be authorised and subject to harmonised regulatory standards on an ongoing basis.

* The transparency of the activities of alternative investment fund managers and the funds they manage must be improved to enable member states to improve the macro-prudential oversight of the sector and to take coordinated action as necessary to ensure the proper functioning of financial markets.

* Alternative investment fund managers will be able to market theur funds to professional investors throughout the European Union subject to compliance with demanding regulatory standards.