Court to hear British bonus cap challenge

Dunce's Cap

The U.K. takes its fight against European Union banker-bonus limits to the bloc’s highest court next week, seeking to overturn a ban on awards of more than twice fixed pay.

Bloomberg reports the European Court of Justice will hear the British challenge on Sept. 8, as EU regulators vow to crack down on banks that try to get around the rules. Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland are among the lenders that have taken steps to circumvent the bonus limit.

EU lawmakers campaigned for the bonus limits in a bid to rein in the gambling culture blamed for helping trigger the 2008 financial crisis. They reached a deal with national governments last year to overrule U.K. opposition and include the measure in legislation that overhauled the bloc’s banking rule book.

The rule is set to kick in next year, when it will apply to bonuses awarded based on bankers’ performance in 2014. The EU court has no deadline for issuing a ruling.

Hit the link below to access the complete Bloomberg News article:

EU Banker-Bonus Cap Faces U.K. Challenge in Highest Court

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