1 year ago
18
ARTICLE AD BOX
Image source, Getty Images
By Noor Nanji
Business reporter, BBC News
The cap on bankers' bonuses is being removed as part of a post-Brexit shake-up of City rules, it has been confirmed.
The plan was announced by former chancellor Kwasi Kwarteng last year as a way of making London a more attractive place to do business.
It was one of the few mini-budget policies to remain after most were unwound by Mr Kwarteng's successor.
The cap will be lifted from 31 October, the Financial Conduct Authority said.
City bosses have long complained about the EU-wide bonus rules which cap bonuses at twice an employee's salary.
They say they lead to higher base pay that pushes up banks' fixed costs.
Those costs cannot be adjusted in line with the firm's financial performance, they add, making the UK less attractive than the US or Asia as a place to do business.
But critics have argued the move benefits wealthy people at a time when many households are struggling with the cost of living.
English (US)