The main staff group at the City's regulator has asked the watchdog to halt plans to scrap bonuses and to stop an "internally divisive" plan to pay London staff more than peers in other offices.

Just days before a landmark consultation on staff job grading and remuneration closed, a letter from the FCA's Staff Consultative Committee to the regulator's board has weighed in with a dramatic last-minute intervention: four counterproposals to the current plans.