Friday 21 November 2014

UK: bank remuneration - a letter to the Governor and an Advocate General's opinion

The Chancellor, in a letter published yesterday and sent to the Governor of the Bank of England (Mark Carney), outlined his concerns regarding the growth in fixed elements of bank remuneration following the introduction of a bonus cap in Directive 2013/36/EU: see here (pdf). He explained that he would be asking the Fair and Effective Markets Review to consider the implications of the move towards increased levels of fixed remuneration.

The Chancellor also stated that the Government had decided not to pursue its case (reference C-507/13) before the Court of Justice of the European Union challenging the validity of the bonus cap. This decision follows the publication yesterday of the opinion of First Advocate General Jääskinen, in which he advised the court to reject all of the UK's pleas and to dismiss the action: see here. A summary of the opinion is available here (pdf).

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