View more on these topics

Paul Tucker backs overhaul of bankers’ bonuses

Paul Tucker
Paul Tucker: Revisit bankers’ bonus rules

Bank of England deputy governor Paul Tucker is calling for an overhaul of bankers’ bonuses by putting bankers personally on the hook for their firms’ survival.

Speaking at the British Bankers’ Association conference in London last week, Tucker said the reform would encourage safer banking and rules should be revisited across the European Union and G20.

Tucker is currently the bookmakers’ favourite to replace Bank governor Sir Mervyn King when he leaves in June next year.

He said: “Having managers exposed to instruments whose value depends on the survival of their firm would give them a healthy incentive to maintain a safe and sound bank.

“There should also be a review of the structure of remuneration for desk-level bankers – tying pay to the medium-term success of the firm. Putting it bluntly, that would make it less easy to get rich quick irrespective of the quality of business transacted or the compliance culture in their part of the firm.”

Tucker also said the FCA will represent a “big change” for the industry and will be a tougher and more challenging regulator.

Tucker said: “The FCA’s approach to enforcement will need to preserve and, where necessary, restore honesty in a market community for which side-stepping rules and principles has become too close to being part and parcel of commercial life.”


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