- Bank of England governor said bankers’ bonus rules could be scrapped post-Brexit.
- Regulation of insurers and challenger banks could also be relaxed, Carney suggests.
LONDON – Britain could scrap restrictions on bankers’ bonuses after it leaves the European Union, the Bank of England governor has hinted.
Mark Carney said at an event in London: “There are things we don’t think are necessary… There are areas we would make changes but within the context of maintaining the overall levels of resilience,” according to The Financial Times.
Carney highlighted bankers’ bonus caps and some parts of insurance regulation as areas that could be changed. He added that he doesn’t think challenger banks and building societies shouldn’t feel the full weight of regulation that established banks deal with.
EU bonus cap rules currently limit investment bankers’ bonuses to 100% of their pay unless shareholders approve awards of up to 200%.
Britain clashed with the EU over the rules and former Chancellor George Osborne fought a legal challenge against the rules in 2014. British authorities believe the rules simply encourage banks to pay higher base salaries to bankers, which cannot be “clawed back” by authorities if any subsequent bad behaviour is uncovered.
Carney was speaking at an event to mark the two-year anniversary of the FICC Markets Standards Board and was asked whether the City of London could become “Singapore-on-sea” after Brexit.
Many pro-Leave politicians have called for a bonfire of regulation after Britain leaves the EU in the hope that it will make Britain more competitive on a global scale.
Business Insider Emails & Alerts
Site highlights each day to your inbox.