Bankers 'to escape new bonus rules'

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Most financial institutions will avoid strict new rules on bankers' bonuses

Most financial institutions in the UK will be able to escape strict European rules aimed at curbing bankers’ bonuses under a new code issued by the City watchdog.

In its updated remuneration code, the Financial Services Authority (FSA) said all but the biggest banks will be exempt from certain guidelines laid out last week by the Committee of European Banking Supervisors (CEBS).

The lower-tier firms – including smaller banks, hedge funds and asset managers – will not have to apply a tighter cap on the proportion of bonuses paid in cash, as put forward by CEBS, the FSA said.

The move is likely to anger politicians and union leaders who have called for a more iron-fisted approach to the banks’ bonus culture.

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