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UK is playing with fire in ditching a cap on bankers’ bonuses

UK is playing with fire in ditching a cap on bankers’ bonuses

Dangling carrots on banker pay will butter few parsnips in Brussels, which is already sensitive about the prospect of the UK tearing up the rule book and creating a regulation-light “Singapore-on-Thames”.

Most European banks keep to the one-times-salary bonus cap, as shareholders must specifically approve lifting it, something very few boards have decided to brave. Meanwhile, most UK banks went for the higher option over time.

If ditching the bonus rule is viewed as a blatant regulatory divergence, it could backfire spectacularly and ruin a much more important financial services equivalence deal with the EU.

There are, of course, potential advantages in unwinding much of the Markets in Financial Instruments Directive (MiFID II) legislation that came into effect in 2014. (Even Brussels is ditching some elements.) If this is just one part of the UK’s big bang 2.0 package to improve the competitiveness of the City of London,

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Es oficial: EA y Motive harán un juego de Iron Man; será un título single-player

Es oficial: EA y Motive harán un juego de Iron Man; será un título single-player