The Committee of European Banking Supervisors today handed financial firms more room to manoeuvre when it comes to adhering to new pay policies, in a move likely to be welcomed by the industry, but the powerful European body has refused to budge on core elements of the reforms.

After considering feedback from 39 parties that responded in a public consultation, CEBS has amended its proposals to address issues raised over proportionality and other elements, leaving greater scope for some investment firms to further "neutralise" the need to have a ratio policy governing fixed and variable remuneration.