LONDON, April 1 The European Parliament won't
delay a cap on bankers' bonuses despite moves by banks in
Britain to soften its impact, senior lawmakers said on Tuesday.
The parliament is concerned that lenders are trying to
circumvent the cap, such as by paying "allowances", to bump up a
banker's fixed pay.
Under the EU rule, which will apply to awards handed out
from early 2015, a bonus can be no higher than fixed pay, or
twice that level with shareholder approval.
Three members of the parliament's economic affairs
committee, Othmar Karas, Udo Bullmann and Philippe Lamberts,
said they will not hold up the new rule after the bloc's
financial services chief Michel Barnier gave them reassurances.
They were worried that exemptions for those earning 500,000
euros or more - an employee's salary threshold for the cap to
apply - could be too easily obtained.
"Commissioner Barnier agreed to issue a statement clarifying
that even total remuneration below 750,000 euro threshold
requires notification of the competent authority in advance of
application," the three lawmakers said.
"In any case, the competent authority must intervene if it
considers the remuneration unjustified or doubtful. For this
reason, we agreed in the end not to object to the regulatory
technical standard, as a thorough application of the standard
should cover the risk-takers whose bonuses we want to cap."
(Reporting by Huw Jones, editing by Kirstin Ridley)