FCA Removes Cap On Bankers' Bonuses To Mixed Reactions

Eve Maddock-Jones
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• 2 min read

UK regulators have moved to scrap the cap on bankers’ bonuses from the end of this month, following ten months of examination.

The Financial Conduct Authority approved the changes as part of its joint review with the Prudential Regulation Authority to examine the existing limits on the ratio between fixed and variable components of total remuneration - ‘the bonus cap'. The current policy cap was first introduced in 2014 and former chancellor of the exchequer Kwasi Kwarteng vowed to overhaul the rules in the government's Mini Budget. FCA turns attention to private market valuations The revision will also apply to bonuses in building societies and PRA-designated investment firms. Originally the rules plac...

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