Bankers' bonuses to face limits in Europe

The new rules may encourage some City workers to quit London for other financial centres
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Remuneration shuffle
Banks in talks over bonuses cut
European regulators are set to reveal tough new restrictions on the bonuses that banks can pay their staff.

The limits are expected to be finalised and announced on Friday by the Committee of European Banking Supervisors (CEBS).

The rules are likely to be much tougher than those agreed by the G20 countries, raising fears that bankers may emigrate to more lightly regulated countries.

The bonus limits are expected to apply to the global staff of European banks.

However, non-European banks will probably only face restrictions on what they pay staff working for subsidiaries based in the European Economic Area.

Relocation threat
The rules may create an added incentive for bankers to relocate to Asian cities such as Singapore that have looser bonus rules, as well as lower tax rates and access to Asia's booming economies.

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