According to Rueters,
The FSA said Thursday it would launch a formal consultation process over the planned changes but added that its existing code on remuneration would be strengthened.How do they know the result of their consultation, because they have been told it by, you will never guess.... yes Brussels.
On July 7, the European Parliament approved what are seen as the world's toughest curbs on bank bonuses, and EU member states, which have joint say, are set to endorse the new law.Godfrey Bloom, UKIP's financial spokesman had this to say,
The proposed EU rules would stipulate that the maximum amount of upfront cash in a bonus should be 30 percent, while for large bonuses it will be capped at a fifth.
EU states want to allow 40 percent of a bonus to be paid upfront, and a deal on a definitive figure is expected later this year.
"So presumably the conversation went something like this Monsieur Barnier Supremo European Financial Services and monarch of all he surveys.Here is the FSA on the subject,
“May I suggest this new bonus scheme for London City Bankers?”
Hector Sants, for it is he, “Wonderful idea Sir I will install it immediately”.
The relationship is that of Monty Burns to Smithers.
"We will see what the final text says and apply it appropriately," an FSA spokeswoman said.Why on earth are they wasting our money on a consultation?
In the FT it is even more absurd.
While the EU legislation had been under discussion for months, it caught most bankers by surprise when it was finalised earlier this month.No it didn't. It caught financial journalists by surprise. Not the industry and certainly not UKIP, both of whom have been banging on about the dangers for months, nay years.
The planned changes, while not unexpected, are likely to spark anger and confusion across the City, which believes that London’s competitiveness as an international financial centre is under threat...Oh brother. Now Mr Osborne, and yes you Mr Cameron. Has our sovereignty been compromised by this by any chance? Has the power to set regulations over our most successful industry been thrown away?
Industry groups have argued that EU member states are now at a disadvantage to countries such as the US and Switzerland, which have adopted less onerous restrictions on pay in the wake of the financial crisis.
Well can we have that promised referendum then please?