Banks warn pay curbs will hit UK competitiveness
The City was again voicing complaints yesterday about the pay restrictions on some of Britain's wealthiest bankers.
The City HR Association and PA Consulting Group warned that London's financial companies believe the Financial Services Authority's Remuneration Code would "make it more difficult to attract and retain talent in London" and reduce competitiveness as a result.
The complaints over pay come despite the accountants KPMG preparing to warn that investment banks have put in a "disappointing" performance on both sides of the Atlantic.
KPMG's UK Banks Performance Benchmarking Report will say that UK banks' combined profits have halved in 2011 compared with 2010 and note the outlook is very challenging.
The FSA's code will force banks to defer much of the pay of senior managers and those performing functions entailing "significant risk" such as star traders.
It has been designed to discourage staff at financial firms from taking dangerous risks, thus helping prevent a repeat of the financial crisis.
But according to the PA Consulting/City HR Association Report, which surveyed senior executives from 50 UK and international banks, 52 per cent of respondents feel the code will make it more difficult to attract talent into London and 58 per cent warn that the code will make it easier to attract talent away from the City. As a result 82 per cent of decision makers at banking institutions say that the code risks weakening UK competitiveness.
- 1 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 3 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
- 4 John Travolta addresses former pilot's gay romance allegations publicly for the first time
- 5 Kanye West stops concert after two fans don't stand up - doesn't realise one is in wheelchair and the other disabled
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Scottish independence: Police will be on high alert on Friday whatever the result
John Travolta addresses former pilot's gay romance allegations publicly for the first time
QS university world rankings: Imperial College London leapfrogs Oxford to join Cambridge as best British university
Scottish independence exclusive: Millions of banknotes sent to Scotland in case Yes vote sparks run on ATMs
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...