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GAAP.RUNewsBanks told to comply on bonuses or loose UK banking licenses in shock FSA ultimatum

Banks told to comply on bonuses or loose UK banking licenses in shock FSA ultimatum

Investment banks have been told that every bonus issued must comply with the regulatory guidelines – or they face having their licenses to operate in Britain revoked.

Publication date: 3 February 2010

In an extraordinary ultimatum that has shocked some of the City’s biggest companies, the Financial Services Authority (FSA) told bank bosses that 60pc of all pay must be deferred, with no exceptions, even for those whose contracts conflicting with the edict.

In an extraordinary ultimatum that has shocked some of the City’s biggest companies, the Financial Services Authority (FSA) told bank bosses that 60pc of all bonuses must be deferred, with no exceptions, even for those whose contracts conflicting with the edict – or they loose UK banking licenses otherwise.