Moon Beever Logo

20-11-2014

The Advocate General has rejected the UK's challenge to its cap on bankers' bonuses.

The cap restricts bonuses to 100% of banker's pay or 200% with shareholder approval. The cap is designed to avoid bankers taking excessive risks but critics say it will push up basic pay.

The UK government challenged the legislation asking the Court of Justice in Luxembourg to consider arguments challenging both the scope and the legal basis for the new rules.

The Advocate General's opinion is not legally binding, but the Luxembourg court may consider his reasoning in reaching its verdict and it is rare for the final judgment to diverge from the AG’s opinion.

Some banks have already forestalled the issue by raising base salaries but one might think this cannot help the competitiveness of EU financial markets against other key markets in the US and Asia.

 

This is intended for general information only and should not be considered as giving advice in relation to any individual case nor be taken as applying to any particular case. No liability is accepted for any such use of the information contained.

TESTIMONIALS

Standout firm known for its personal insolvency work for clients including private companies, individuals and governmental institutions. Frequently acts for insolvency practitioners, assisting with the realisation of assets, both in the UK and abroad.

Chambers and Partners

Contact Us

Our office locations can be found here and individual staff profiles here together with full address and contact details. 

For non-urgent enquiries by email, please complete the contact form below and we will respond as soon as possible.

logo-alep-min
logo-legal500-min
cq-logo
logo-rescue-awards-min
logo-lexcel-min
logo-chambers-and-partners-min
stonewall
wiq-logo