No legislation to restrain bonuses planned for UK bankers, says Financial Times

FINANCIAL SERVICES

No legislation to restrain bonuses planned for UK bankers, says Financial Times

The coalition government does not plan to legislate to curb bankers’ bonuses, urging the industry instead to exercise voluntary regulation to regain public trust, according to the Financial Times newspaper.

The Con-Lib coalition has said it will look at a financial activities tax on remuneration and profits. But Mark Hoban MP, the new financial secretary to the Treasury is reported by the Financial Times to have said that such a tax would not proceed without an international consensus, widely considered unattainable.

According to the Financial Times report, the new government has also ruled out a repeat of the bank payroll tax of 50% levied on bonuses that the Labour government introduced in December 2009.

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Title: “Call for UK bankers to self-regulate pay”, by Brooke Masters and Patrick Jenkins, FT.com, 12 July 2010.

Availability: To read the article online visit the Financial Times web site at www.ft.com/cms/s/0/74b91486-8df0-11df-9153-00144feab49a.html.