‘Smaller UK banks and investment firms will not have to abide by EU bonus cap rules’
The UK's financial regulators have told their European counterparts they will not be applying the bonus cap to smaller banks and investment companies.
The Financial Conduct Authority (FCA) and the Bank of England's prudential regulation authority (PRA) have told the European Banking Authority (EBA) they will not apply the bonus cap to all firms recommended by the EBA's guidelines.
The bonus cap will still apply to big banks and financial firms deemed to be systemically important, reported City A.M.
The Bank of England said: “Since the introduction of the bonus cap, a number of firms have markedly increased fixed pay as a percentage of total pay, whilst total pay remained stable during the same period.”
“The PRA and FCA believe that the shift to fixed remuneration makes it more difficult for firms to adjust variable remuneration to reflect their financial health, and limits deferral arrangements that put remuneration at risk should financial or conduct risks subsequently come to light.”
Retailer giant’s share price rises
Morrisons' share price soared 5.4% after revealing it had secured a major new agreement with Amazon, to sell "hundreds of products" via Prime Now and Pantry.
The new tie-up, which will go live "in the coming months", will see Morrisons provide a wholesale supply service to Amazon, offering delivery of its ambient, fresh and frozen products.
The move is part of Morrisons' six-pillar turnaround plan "to make the supermarket strong again", with this enabling the business to grow volumes while remaining "capital light", reported City A.M.
Chief executive David Potts said: "Today's agreement is built on Morrisons unique strengths as a food maker. The combination of our fresh food expertise with Amazon's online and logistic capabilities is compelling.”