The UK's top financial watchdog has told the banks at the centre of the foreign exchange rigging scandal that their huge fines should be funded out of this year’s round of bonuses.
The Daily Telegraph reports that the Financial Conduct Authority (FCA) is reviewing the bonus pools of the biggest British banks and UK subsidiaries of foreign ones, and has told them that any payouts that do not reflect the recent penalties will be considered inappropriate.
Royal Bank of Scotland, HSBC, UBS, JPMorgan and Citibank were fined a combined £1.1bn ($1.7bn) by the FCA in November for failures that meant traders were able to manipulate foreign exchange rates at the expense of customers.
The regulator can ask banks to alter pay plans if it has concerns about both the total level of bonuses, and high payouts for senior individuals.
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