MPs want to double bankers facing pay rules

Tim Wallace
Follow Tim
THE NUMBER of bankers facing tight regulations on their pay could double to 20,000 – if a committee of MPs gets its way.

New rules mean senior managers and risk-taking staff must receive a large proportion of bonuses in shares and wait for years before getting the awards. That amounts to 8,162 staff from the biggest 20 banks, plus more at smaller banks.

But the Treasury Select Committee of MPs wants all staff covered by the Certification Regime to face the bonus rules – staff who have to get regulatory approval to do their jobs.

That would cover 20,000 bankers, including roles such as investment advisers which are not senior risktakers. The change would make the UK rules unusually tough.

“The government continues to resist the application of remuneration rules to certain key banking staff—staff who are in a position to cause serious harm to markets, to their bank or to customers,” said committee chairman Andrew Tyrie MP, who also chaired the Parliamentary Commission on Banking Standards, which recommended the change.

“It is essential for the protection of shareholders and customers that remuneration standards of some sort apply.”