View more on these topics

UK isolated as EU pushes ahead with bank bonus cap

EU Flags European Union 480

The UK has been left isolated as the EU pushes ahead with its decision to cap bankers’ bonuses.

Chancellor George Osborne was in Brussels yesterday for a meeting of the EU’s 27 finance ministers to discuss CRDIV.

The directive is primarily designed to introduce Basel III capital requirements but the legislation has other issues around bonuses and country reporting attached to it.

The FT reports that an overwhelming majority backed a bonus cap of 100 per cent of basic salary that could rise to 200 per cent with significant shareholder approval.

The new rules will apply to bankers operating outside of the EU but within an EU-based bank with major implications for the likes of Barclays and Standard Chartered.

PricewaterhouseCoopers head of reward practice Tom Gosling told the FT the deal “reflects pretty much the worst case outcome for banks based in London and EU banks in particular”.

Ministers are expected to finally vote on the measures in April. The Irish presidency has made it a priority to approve CRD IV before its term finishes in July.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Just goes to show what idiots the EU are.

    The banks will find many ways to get round this very silly idea and it will of course have a damaging effect on the UK which is what I suspect the real purpose of this legislation. It certainly won’t stop the problems of the past either that is probably more likely to reduce considerably however due to the ever increasing costs the banks face as a result of their lack of judgement as much as any regulations.

    Whatever the outcome I doubt it will affect the pay or benefits of any of the top people at the banks.

    It could however encourage dubious bankers to get their own back on the EU which relies on them for so many things in the current climate.

Leave a comment

Close

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

Email: customerservices@moneymarketing.com