)Bank of England unveils new plans to claw back banks' bonuses
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E-mail Xinhua, July 30, 2014
The Bank of England Wednesday announced plans to claw back rule-breaking bankers' bonuses up to seven years after they had been awarded.
The Bank released new consultation papers on Wednesday to improve individual responsibility and accountability in the banking sector.
Actually, the Parliamentary Commission for Banking Standards (PCBS) published similar regulations to improve professional standards and culture in the Britain banking industry last year.
The proposals announced today would make it easier for firms and regulators to hold individuals to account.
As part of the changes, the Bank's consultation paper would force bankers to hand back their bonuses even if they had spent them.
The Bank also said it was now proposing that the deferred portion of a bonus should be paid over at least five or seven years, depending on seniority.
The rules would come into force next year. And the measures are in response to public anger over some banks' serious misconduct such as Lloyds Banking Group.
The company was condemned over certain key interest rates set in London, and was fined 218 million pounds (370 million U.S. dollars) days before.
"Holding individuals to account is a key component of our job as regulators of banks," said Andrew Bailey, the Bank's deputy governor for prudential regulation.
"The combination of clearer individual responsibilities and enhanced risk management incentives will encourage individuals in banks to take greater responsibility for their actions," he said.
"Today's consultations mark a fundamental change in the regulators' ability to hold individuals to account, which is what the public expects of us," said Martin Wheatley, Chief Executive of the Financial Conduct Authority. (1 pound = 1.70 U.S. dollars) Enditem
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