UK bank pay curbs 'could harm the sector'

17 August 2011

Banks in the UK have voiced concerns that imposed pay curbs on the sector could serve to harm the industry.

A survey carried out by the City HR Association and PA Consulting Group found many lenders believe the Financial Service's Authority's (FSA's) Remuneration Code would make it increasingly difficult for London to attract and retain top talent in the field.

According to the poll, 52 per cent of those questioned claimed this would be the case, while 58 per cent said the changes would make it easier for other financial hubs to lure professionals away from England's capital.

Moreover, 82 per cent of the senior executives from UK and international banks quizzed said they believe the code might lead to a weakening of competition in the UK.

The FSA - an independent non-governmental body - stated the move "could also adversely affect UK competitiveness, as firms subject to this requirement may find it more difficult to compete for talent on a global basis".

By Asim Shah

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