Partner Article

Bankers’ bonuses to face ‘dramatic’ change in Europe

EUROPEAN regulators have confirmed tough restrictions on the bonuses that banks can pay their staff.

Only 20-30% of bonuses can be paid in upfront cash, according to new guidelines announced by the Committee of European Banking Supervisors (CEBS).

The rules are much tougher than those agreed by the G20 countries, raising fears that bankers may emigrate to more lightly-regulated countries.

The British Bankers’ Association called it a “dramatic” change.

Although they the guidelines for European national financial regulators are not obligatory, a spokesman for the Financial Services Authority (FSA) confirmed that the UK bank watchdog and its European counterparts intend to implement them in detail.

This was posted in Bdaily's Members' News section by Ruth Mitchell .