Money management professionals can expect to see a 5% to 10% decline in bonus payouts in 2016 from last year, said projections from compensation consultant Johnson Associates.
This is due in part to modestly lower average assets under management and mixed flows, partially offset by market appreciation.
This compares with the 5% decline in 2015 from the year before.
The consultant attributes continued staff reductions and constrained hiring as factors for the expected decline. Brexit is also causing select businesses to begin planning for potential staffing adjustments.
Although the impact of the Labor Department's fiduciary rule on money management firms has not been felt yet, Johnson Associates suggests that it could affect the structure of sales compensation.
Incentive payouts for professionals in private equity are expected to drop 5%, while professionals in the hedge fund industry can expect a decrease of 5% to 15% from last year's bonus.
The projections are based on second-quarter trends in the financial services industry.