View more on these topics

EU set to impose tough bankers’ bonus cap

EU Flags European Union 480

The European Union is on the brink of imposing a tough new cap on bankers’ bonuses against the wishes of the UK.

The FT reports that a clear EU majority favours a cap on bonuses so they do not exceed final salaries.

The European Parliament has been working on a deal within CRD IV for almost a year with no agreement but a deal now seems close.

France has now joined Germany in backing a bonus cap to stop the dispute further delaying the introduction of bank capital rules as part of CRDIV.

Britain is proposing a compromise that allows banks to pay bonuses that are double basic salaries if there is a supermajority of shareholder support.

On British diplomat involved in the talks told the FT: “The banks are panicking. They always thought the UK and Germany would save them.”

Last month Conservative MEP and shadow rapporteur on CRD IV Vicky Ford told Money Marketing talks were going “round in circles” over the bonus cap.

Money Marketing understands the Irish presidency of the EU has made passing CRD IV during its six month term its top priority after months of delay.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm