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The British Bankers' Association said:
"UK banks recognise that reform of pay structures plays a significant part in restoring confidence in the industry. Banks link pay and bonuses to the long term success of the business and do not reward staff in ways which encourage undue risk taking. Indeed, for the past year, pay and bonus policies have been regulated by the Financial Services Authority. Banks have also paid additional tax on bonuses, and individual policies at state-supported banks have been closely monitored by the government.
"The UK has moved further and faster on reform of pay and bonuses than any other country. Today's proposals from the FSA represent the UKs contribution to levelling the playing field for all EU financial institutions, as they will implement the EU-wide rule changes which will come into force next January.
"The BBA maintains that reform of the bonus system in financial services must be globally coordinated. A global industry needs to conform to global standards, as any country which takes a lighter approach will prove to be a magnet for business. We now need other countries to coordinate their reforms with the UK and EU rules. We will work with the FSA to ensure rule changes do not damage the banks ability to recruit and retain staff in the UK."
