UK Banks Agree to G-20 Bonus Pay Rules
The UK subsidiaries and branches of a number of global banking firms agreed to implement the new compensation reforms called for at the Group of Twenty(G20) Pittsburgh meeting at the end of September, according to Paul Myners, a secretary at the country's regulatory body, the Financial Services Authority (FSA). Bank of America Merrill Lynch, Citigroup, Credit Suisse, Goldman Sachs International, JP Morgan Securities, Morgan Stanley, Nomura and UBS, as well as EU banks with major London branches, BNP Paribas, Deutsche Bank and Société Générale confirmed their participation in the Financial Services Authority (FSA) rules on pay that dictate how and when bonuses can be paid. “The financial services industry must take a responsible and long-term approach to remuneration if it is to retain its competitiveness and regain public trust,” Myners said. The changes come as a result of public and political outcry against banking firms that paid bonuses to employees when they were recipients of government bailouts. Write to Austin Kilgore.