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BOE's Carney hints at scrapping banker bonus cap after Brexit

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Bank of England Governor Mark Carney indicated the UK will review a cap on banker bonuses after Britain exits the European Union.

[LONDON] Bank of England Governor Mark Carney indicated the UK will review a cap on banker bonuses after Britain exits the European Union.

The UK will re-examine a number of rules, while seeking to maintain a high level of standards applied to the financial services industry, Mr Carney said in response to questions at an event in London on Wednesday.

"There are things however that we don't think are necessary - the bonus cap - we are very clear on that," he said.

"There are areas where we would make changes but within the context of maintaining the overall level of resilience."

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The limit on bonuses inside the EU at twice fixed pay has been around since 2014 and British lenders and their regulators have been united in their hostility toward it.

Banks including Barclays and HSBC Holdings led the way in trying to circumvent it, while former Chancellor of the Exchequer George Osborne tried unsuccessfully to overturn it in the EU's top court.

Mr Carney's comments come as UK and EU negotiators reach an outline deal on the Brexit divorce bill, clearing a key hurdle in discussions.

BLOOMBERG

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