British bankers may be subject to world's toughest bonus clawbacks

Oliver Twist

Staff at British banks could be made to hand back bonuses more than six years after the money has been paid to them under a regime that will amount to the world's toughest rules on clawing back remuneration.

Sky News reports they have learnt that the Bank of England (BoE)'s Prudential Regulation Authority (PRA) has decided to enforce, and potentially augment, a draconian proposal outlined in March.

In a policy statement to be published on Wednesday, it will confirm that banks will have to amend the employment contracts of senior staff in order to implement the new rules, which will come into force on January 1 next year.

Coming in the wake of a series of market manipulation and mis-selling scandals which have triggered tens of billions of pounds in fines and compensation to consumers, the tougher pay framework is likely to be welcomed in Westminster but spark opposition from bank executives who argue that the City's international competitiveness will be undermined.

To access the complete Sky News article hit the link below:

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