LONDON, July 30 Bankers who break the rules may
have to hand back bonuses up to seven years after being awarded
them, the Bank of England said on Wednesday.
The Bank had proposed in a consultation paper in March there
could be clawback of bonuses up to six years from the date they
were fully paid out.
Britain is introducing some of the toughest curbs on bonuses
in the world at a time when bad behaviour is still being
The rule will come into force next year.
"In order to ensure a consistent and even application of the
clawback requirement across industry, the final rule requires
the application of clawback only to awards made on or after
1 January 2015," the Bank said.
Bonuses are typically paid out over three to five years and
can already be clawed back during this time, but the new rule
goes further to allow the clawing back of an award after it has
The Bank also said on Wednesday it is now proposing that the
deferred portion of a bonus should be paid over at least five or
seven years, depending on seniority.
Probes into some misconduct, such as rigging of market
interest rates, take several years, meaning the bankers involved
may have already been paid bonuses covering the time the
rule-breaking took place.
Earlier this week Lloyds was fined $370 million for
rigging market benchmarks and there are allegations that banks
have been rigging the foreign exchange market.
(Reporting by Huw Jones, editing by Matt Scuffham)