The chair of the European economic and monetary affairs committee, Liberal Democrat MEP Sharon Bowles, has criticised the FCA for failing to include the cap on bankers’ bonuses in its consultation on the implementation of new European banking rules.
Last week, the FCA published a consultation on parts of the directive but it did not include anything on the cap. It said the regulator was “considering” the cap with the Treasury in light of the Parliamentary Commission on Banking Standards’ view that even though remuneration reform is necessary, the “crude” cap is not the best way forward. A separate consultation is likely to follow in the future.
Speaking to Money Marketing, Bowles says: “It is basically saying what the banking commission has come out with is taking precedence over the rules from Europe, which of course is the wrong way around. The banking commission’s report said it did not like caps, but that is just too bad. They have to have it because it is in the directive.”