The new European Union (EU) hedge fund passport rule the European Parliament is soon to vote on, will permit all hedge funds, including those in the U.S., to operate throughout all of Europe’s 27 nations—but it would also subject them to the strict compensation rules.

If passed, the passport would apply to European funds in 2013, and to all others in 2015.

The rules require hedge funds to pay at least half of bonuses in the form of shares, and defer at least 40% of this payment over three years.

The Alternative Investment Management Association of the U.S. is opposed to such a rule, as are managers in the U.K.