Will it impact you ?
European Union officials will this week propose capping financial sector pay above £423,000 ($642,000), accountancy firm PwC said on Friday, suggesting the world's most stringent curbs for the industry will affect far more bankers than previous rules.
Reuters reports that The European Banking Authority will this week for the first time put a number on where it would like its planned bonus cap to start and PwC said in a statement that the threshold would be set at £423,000.
The EU watchdog's board met on Thursday and a spokeswoman declined to comment before the paper is released formally for public consultation.
Banking pressure groups and bank officials also all declined to make any comment but at least one major financial sector law firm said it had already had numerous inquiries from banking clients on the issue.
Jon Terry, a partner at PwC, said the £423,000 threshold would increase the number of staff subject to bonus capping perhaps by as much as 10 times for some investment banks operating in London in comparison with current UK rules.
'This will create a major challenge for banks as to how they reward their staff', Terry said. 'Bringing more people into the stringent pay rules again further widens the gap between pay practices in Europe and the rest of the world'.
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