The Bank of England’s plans to impose seven-year clawbacks on bonuses and threaten bankers with jail could damage the City of London’s competitiveness and impose direct costs of more than £260m ($439.3m) on the country’s banks, the industry has warned.
The Daily Telegraph reports that bankers, advisers and businessmen united to criticise the impact of the Bank’s regulatory plans, aimed at increasing individual accountability in the wake of the global financial crisis.
Anthony Browne, chief executive of the BBA, which represents the UK’s biggest banks, said: 'It is important that any new regulation does not put British banks at a disadvantage when it comes to attracting and retaining the best workers here and overseas'.
Michael Isaacs, national head of banking and finance litigation at law firm Pinsent Masons, warned: 'Clawback has a lot of support … but these proposals would give rise to a significant international disparity and may affect the City’s competitive position and ability to attract talent. We are unlikely to see other regulators in other jurisdictions take such a strident position'.
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