Overseas Banks Agree To Support G20 Bonus Reforms: UK Treasury

Sponsored Links

The UK subsidiaries and branches of leading overseas banks have agreed to support reforms to bank pay agreed by the G20 in Pittsburgh, British Financial Services Secretary Paul Myners said Wednesday.

A statement from the HM Treasury said Bank of America, Merrill Lynch, Citigroup, Credit Suisse, Goldman Sachs International, JP Morgan Securities Ltd, Morgan Stanley, Nomura and UBS have confirmed their commitment to the Financial Services Authority Rule and supporting Code on remuneration practices, which was published in August and are set to come into force on January 1, 2010. These banks have also expressed their full support for the G20 agreement, which sets global standards for the implementation of the Financial Stability Board's remuneration principles.

"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. EU banks with major London branches, BNP Paribas, Deutsche Bank and Société Générale confirmed that they will implement the G20 agreement in accordance with their home regulator and would seek to voluntarily comply with the FSA Rule on Remuneration for their UK based employees.

"We welcome the global nature of the G20 remuneration reforms and will work with the FSA and regulators in our home countries in adopting the reforms, recognizing that all G20 nations have also committed to their implementation to ensure a level playing field," banks said in a joint statement. "In a competitive and global business, banking remuneration must be consistent with effective risk management and there must be national and international consistency on this issue."

The UK subsidiaries and branches of leading overseas banks have agreed to support reforms to bank pay agreed by the G20 in Pittsburgh, British Financial Services Secretary Paul Myners said Wednesday. (Market News Provided by RTTNews)