The European Parliament recently voted 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 for the level of regulatory capital that managers would be required to hold, as well as its restrictions on how managers pay their employees and the remuneration disclosures that would be required. 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 and managers. See also “The U.K. Senior Managers Regime: Prescribed Responsibilities, Statements of Responsibilities, ‘Fit and Proper’ Determinations and Staff Certification” (Aug. 6, 2019). For additional insight from Ng, see “E.U. Market Abuse Scenarios Fund Managers Must Consider” (Dec. 17, 2015).