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FCA warns EU bonus cap could double bankers’ salaries

Martin Wheatley 2 2013 700x450
Financial Conduct Authority chief executive Martin Wheatley

Financial Conduct Authority chief executive Martin Wheatley has warned the EU’s plans to cap bonuses could see bankers’ salaries double.

According to the Guardian, Wheatley said Europe’s plan to cap bonuses at 100 per cent of salary for those earning more than €500,000 could make it difficult to claw back payments if necessary.

Wheatley said the last time regulators attempted to restrict bonuses, middle-ranking bank staff saw their pay go up “by 100 per cent”. He added: “And the same thing will happen again.”

Earlier this year, the EU proposed a cap on bankers’ bonuses of 100 per cent of their salary, or 200 per cent with significant shareholder approval.

The European Banking Authority is set to publish details of the cap next week when the rules will be put out to consultation.

PricewaterhouseCoopers has warned the EU is set to hugely expand the scope of the bankers’ bonus cap to hit 10 times more people than initially thought.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Cap their earnings then, if we can ban Consultancy Charging overnight (based on a Which survey) then we can cap bankers earnings & bonuses – perhaps we can also apply the rules to the Regulator and stop them getting bonuses.

    Afterall Martin’s predecessor (Hector) only used to give his bonus (or our money) to a so called charity – an Art one with family connections I believe!

  2. I tend to agree with the first comment, from David, IFAs work under an unaccountable and undemocratic regime that stipulates how we must be remunerated and even takes away the client’s choice of how to pay us. If they can do that they may as well go the whole communist hog and cap salaries and bonuses. Most of these guys should be in a gulag by now anyway.

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