Bankers pay guidelines will soon be updated according to the FSA (Financial Services Authority). Included in the new rules are tighter restrictions on bonus payments and pension deals. The new guidelines will affect 2500 city firms.
Prior to these new guidelines being handed down, only the biggest bans were subject to FSA pay rules. Now, any bank with any number of employees can be included under the umbrella.
These charges will be enforced starting in October of this year.
Although implementing the new guidelines has been left up to individual EU members and their regulators, official agreement of the new rules came earlier this month within European Parliament. Their goal through this new funds management plan was to reduce risk taking within the firms.
The changes include paying at least 50 per cent of bonuses in shares and deferring at least 40 per cent of bonus payments over a three year period.