EU toughens up banker bonus cap in new blow to UK

Telegraph:

European Banking Authority says use of role-based allowances constitutes breach of EU rules, and orders banks to change pay policies .

European regulators have launched a clampdown on banks using “role-based allowances” to sidestep an EU cap on bonuses, saying that dozens of banks have breached the cap. The European Banking Authority said that “in most cases”, the 39 banks that have used the allowances had broken rules that restrict bonuses to 200pc of salaries.

The move is likely to heighten tensions between the UK and EU over Brussels’ influence on the financial sector. The bonus cap has proved highly unpopular in the City, where the majority of Europe’s highly-paid bankers are located.

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