EU: banker-style bonus curbs not for fund managers
Thursday 04 July 2013
Brussels has backed down on plans to impose strict bonus caps on fund managers operating across Europe in a move welcomed by the City.
The European Parliament said that fund managers should receive a higher proportion of their bonuses in shares, but stopped short of forcing the same rules on the industry that they pushed through for bankers earlier this year.
Politicians rejected original plans to ban bonuses larger than salaries by 348 votes to 341. However, talks are now set to commence with member states that could still see restrictions placed on bonuses for asset managers, many of who are based in the Square Mile.
Sharon Bowles, Liberal Democrat MEP for South East England, said: "I have always maintained that banks have a monopoly on liquidity and lending, both of which are ultimately provided at public expense. For this reason I do not think it is appropriate to roll out the same bonus cap across all financial services legislation."
City experts welcomed the news, although Sven Giegold, a German MEP, described it as a "dark day for investor protection".
Carol Hall, head of European affairs at the Association of British Insurers, said: "While the merits of such regulation are highly questionable even in the context of banks, in the case of asset managers the arguments for imposing such a cap are even more unsubstantiated. We are pleased that MEPs have identified this and that this now sets a firm precedent for other corporate sectors."
Five months ago officials agreed that bank bonuses in the European Union should be limited to no more than base salary – or up to twice salary with the explicit approval of shareholders.
Fears had grown that the tough rules could spread to other parts of the City including the insurance sector before yesterday's vote.
Midsummer swimwear season is well and truly upon us – but diving in at the deep end is no excuse for shirking the style stakes
- 1 Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
- 2 Question Time's 'passionate highlander' is the William Wallace of the Better Together campaign
- 3 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 4 Tony Abbott embarrasses Australia by praising Japanese WWII military, ‘getting on the sake’ and posing for ‘crotch-shot’ photo opportunity
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Question Time's 'passionate highlander' is the William Wallace of the Better Together campaign
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...