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Asset Management

Regulators stick to their guns on bonus cap

European Banking Authority dashes hopes of a reprieve for asset managers and smaller banks, but leaves door open for specific exemptions from some of the rules' detailed requirements

The European Commission's offices
The European Commission's offices

The European bonus cap is set to apply to thousands of smaller banks, asset managers and broking firms, in a sweeping extension of the EU’s say over financial institutions' pay that dashes hopes of a reprieve from the rules.

The European Banking Authority, in its final guidelines on sound pay policies published on December 21, made clear that "the application of the so-called 'bonus cap' should not be subject to any exemption".

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