header-logo header-logo

Strapped for cash

29 July 2010 / Juliet Carp
Issue: 7428 / Categories: Features , Employment
printer mail-detail

What do the new EU bonus rules mean for business, asks Juliet Carp

On 30 June the EU dropped a bombshell on credit institutions and investment firms. It was announced that new proposals would “transform the bonus culture and end incentives for excessive risk taking”. The message from Arlene McCarthy, the rapporteur in charge of negotiations for the European Parliament, was blunt: “In the last two years the banks have failed to reform, and we are now doing the job for them.”

New rules will affect the timing of payment, form of delivery, and size of bonuses delivered to large numbers of employees working in the financial services sector.

Where can the new rules be found?

The rules are outlined in the proposed new Capital Requirements Directive (amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies). The proposals could technically change before the directive is adopted, though this is unlikely (EU guidance will follow). EU member states will then need

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

DWF—19 appointments

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS
Artificial intelligence may be revolutionising the law, but its misuse could wreck cases and careers, warns Clare Arthurs of Penningtons Manches Cooper in this week's NLJ
Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ
The Supreme Court issued a landmark judgment in July that overturned the convictions of Tom Hayes and Carlo Palombo, once poster boys of the Libor and Euribor scandal. In NLJ this week, Neil Swift of Peters & Peters considers what the ruling means for financial law enforcement
Charles Pigott of Mills & Reeve reports on Haynes v Thomson, the first judicial application of the Supreme Court’s For Women Scotland ruling in a discrimination claim, in this week's NLJ
Bea Rossetto of the National Pro Bono Centre makes the case for ‘General Practice Pro Bono’—using core legal skills to deliver life-changing support, without the need for niche expertise—in this week's NLJ
back-to-top-scroll