EU 'should widen bonus caps remit'

12 November 2009

The European Union (EU) should apply bonus caps not only to bankers, but also to hedge fund managers and private equity firm staff, it has been suggested.

Swedish financial markets minister Mats Odell said that a level playing field was needed across the entire financial sector.

He wants the regulations to closely follow those currently being debated on bankers' pay in the European Parliament, in which senior managers would have to defer at least 40 per cent of their bonuses for a minimum of three years, reports Bloomberg.

"We need to regulate all of the sectors, but this should be a balanced regulation and not over-regulation. We don't want to kill the industry," he clarified.

Earlier this week, EU finance ministers signed a preliminary agreement to boost capital requirements for banks, as well as preventing pay policies that encourage excessive risk-taking.

The agreement will come in to place once it has received the approval of EU member states and the European Parliament.

By Asim Shah

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