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 Sainsbury's '50p challenge' poster telling staff to encourage customers to spend more placed in shop window instead of staff room
- 2 Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
- 3 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 4 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 5 Teenagers irritable because early school hours mess with their biological clocks
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...