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Banks face further restrictions in war to retain talented staff
GUIDELINES on implementing the EU’s new bonus regulations will deprive banks of a major way of retaining their most talented staff, experts have said.
In detailed guidance issued last week, the Financial Services Authority (FSA) gold-plated EU regulations on bonuses so as to effectively rule out retention bonuses to existing staff.
PricewaterhouseCooper’s Jon Terry said: “It’s likely the latest announcements will spell the end of guarantees for existing employees, which had been an important tool for firms to retain talent.”
The news follows revelations by City A.M. earlier this year that both Barclays and RBS are fighting a rise in “regretted losses” – the loss of talented staff despite efforts to keep them.