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Banks hit back over ‘absurd’ EU bonus rules

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Banks have warned European rules on bankers’ bonuses are being applied too strictly which will hurt them when it comes to recruiting.

The Financial Times reports banks are concerned about a recent legal analysis on EU rules on bankers’ pay which says rules must be applied across the sector.

Currently, national regulators can exercise discretion over how EU bonus rules are applied, with different rules depending on a firm’s size.

The FCA allows some of the 1,000 brokerages and investment firms it supervises not to apply some of the rules.

But banks say these exemptions could be lost if the legal analysis is not reassessed. They say smaller banks and investment firms would face new requirements and larger banks would have to extend the rules to previously exempt staff, for example those working in their asset management arms.

Trade body the European Banking Federation is seeking urgent talks with the European Commissioner responsible for executive pay to reconsider.

EBF chief executive Wim Mijs says: “A strict interpretation of the rules would lead to absurd results, with a heavy administrative burden.”

A letter to the Commisioner from EBF president Frederic Oudea, sent last month, warned the removal of the exemptions would lead to “disproportionately high implementation costs and administrative burdens without any commensurate benefits”.

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  1. Martin Wheatley gets paid a bonus, as do many of FCA staff, lots of other people in different professions and industry get paid bonuses !

    What “Legal” right do the Eurocrats, homeland government, or regulator to say one section of society are not allowed bonuses or have their bonus sanctioned in one way or another ?

    Mine or any one else’s opinion on who gets paid what and in what format is not my/our business, to my knowledge its not illegal ……..

    Now consider how the FCA are funded….. they charge an industry what “they” deem necessary to operate, give themselves bonuses, based on what exactly ? performance, profit, budget ? how is this measured ? personally I have not seen any definitive scale or calculation to imply; you have achieved this or that, so you get a contractual bonus of X,Y, or Z

    People who use banks have a choice ! if they are not happy they don’t use them or can restrict how they use them ….

    If I don’t want to pay the FCA or restrict part of what I do pay, used for bonuses to people I don’t think deserve them, I’m afraid I am out of work and de-authorized, branded as clear as day across my forehead “NOT FIT OR PROPER” !!!

    Don’t forget the FCA set their own budgets with no out side restrictions or due process, levied on a industry and individuals who have to pay, whether they can afford it or not, or be damned suffer the consequence !

    Now the FCA do have to consider their own longevity; they have to farm us hard, but just keep us alive, here I give you the R. M. A. R. !!

    The very tool !! the horses collar (if you will)

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