Earlier this year, the European Parliament voted in its plenary session to adopt the text agreed by the European Commission, the European Parliament and the Council of the E.U. on a new legislative package revising the prudential framework for E.U. investment firms. Investment managers based in the E.U. will need to consider this new legislative package given its implications not only for the level of regulatory capital that those managers would be required to hold, but also for the restrictions on the ways in which those managers could pay their employees and the remuneration disclosures they would be required to make. In a guest article, Leonard Ng and Chris Poon, partner and senior associate, respectively, at Sidley Austin, explore the implications of the legislative overhaul of the prudential framework for E.U. investment firms, particularly with respect to E.U. investment managers. For coverage of the proposed overhaul of the prudential framework, see “What Are the Implications for Investment Managers of the Revised Prudential Framework for E.U. Investment Firms?” (Mar. 22, 2018).