EU said set to ban generous banker pay allowances

European Union

Under proposals, bankers or traders with the same job description would receive the same allowance, regardless of individual performance.

The Telegraph reports that the European Union regulators are poised to ban generous City of London financial sector allowances that are seen as sidestepping Brussels legislation setting a cap on banker bonuses.

Draft recommendations from the European Banking Authority (EBA) will force British banking regulators to tighten up enforcement of EU rules on banker bonuses.

The move comes as the European Parliament has threatened to block Lord Hill as the next EU financial services commissioner unless he promises to cut the allowances at his hearing with MEPs next week.

Under the EU’s bonus cap, currently being challenged in the European courts by Britain, variable pay for bankers is limited to a maximum of twice the fixed annual salary.

Hit the link below to access the complete Telegraph article:

EU to crack down on UK attempts to sidestep banker bonus cap

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