Regulators have told City bosses not to be scared of cutting bonuses for risk-takers as banks continue their wait for a decision on the future of the bonus cap.

The Financial Conduct Authority and Prudential Regulation Authority opened a consultation on whether to scrap the EU-inherited limit on bonuses of twice annual salary in December, amid concerns from top politicians that it had not been effective at stopping the kind of excessive betting that led to the 2008 financial crisis.