Brett Hillis in City AM on FSA's plans to tear up bankers' pay contracts
17 November 2009
Brett Hillis is quoted in City
AM on the FSA's plan to tear up bankers' pay
contracts.
Chancellor Alistair Darling will this week unveil new enforcement
powers for the FSA as part of the financial services bill. The
measures will grant the FSA more power in tackling wrongdoing and
excessive bonuses, with Mr Darling proposing strengthening the
regulator's power to punish individuals and banks that break rules,
including imposing suspensions on certain forms of business.
The Chancellor will also add a legal right for the FSA to tear up
employment contracts for bankers if the terms encourage risk-taking
or include multi-year guarantees.
Brett was quoted as saying: "This goes against the idea of a
free-market employment contract. The FSA has powers anyway - it can
alter capital requirements if it is not happy with
remuneration policy - so I question if it is necessary."
To see Brett's quote in City AM click here.