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.
- 1 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 2 West poised to join forces with President Assad in face of Islamic State
- 3 Mother fed her daughter tapeworms to make her skinny for pageant
- 4 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 5 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with President Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£30000 - £45000 per annum: Harrington Starr: A global investment management fi...
£65000 - £75000 per annum: Harrington Starr: Senior Network Engineer-(CCIE, CC...
£70000 - £80000 per annum: Harrington Starr: Senior Network Analyst - (CCIE, C...
£60000 - £80000 per annum: Harrington Starr: Senior Network Engineer-(Design, ...