"UK Abolishes Bankers' Bonus Cap, Sparks Controversy"
Originally Published 2 years ago — by Reuters UK
Britain has scrapped a decade-old cap on banker bonuses inherited from the European Union, signaling a divergence in post-Brexit financial rules. The cap, introduced in 2014 to prevent behavior that led to the 2008 financial crisis, has been criticized for leading to higher fixed salaries. The Bank of England and Financial Conduct Authority proposed scrapping the cap earlier this year, and its abolition was confirmed in final policy published on Tuesday. The change will enter into force from October 31, earlier than the original proposed start date of 2024. The decision has drawn criticism from labor unions, while law firm Linklaters stated that it aligns Britain with the rest of the world, except the EU.