BREXIT MEANS A BETTER ECONOMY
Now outside the EU, the UK has been able to remove the cap on bankers bonuses introduced, despite British opposition, in 2014 – allowing London to yet again be competitive on the world stage for the best and brightest talent in the sector.
Explanation:
In 2014 the EU introduced a cap on the amount able to be awarded as a bonus to employees in the banking sector, despite the opposition of the UK – the member state most affected by the legislation. This action left London (along with the other much smaller financial centres in the EU) uncompetitive on the global stage for attracting the best talent within the banking sector.
As the Bank of England stated in October 2014, “The bonus cap is the wrong policy, the debate around it is misguided”.
From outside the EU, the UK has been able to remove this cap – which allows London to once again compete with the other global financial capitals like New York and Hong Kong, but will also result in a higher amount of banking revenue being invested into public services through the taxation collected from those increased bonuses.
Reference: https://www.reuters.com/world/uk/uk-regulators-confirm-plan-scrap-cap-bankers-bonuses-2023-10-24/
Reference: https://www.thebanker.com/What-does-the-UK-banker-bonus-cap-scrap-mean-1698391634
Reference: https://www.politico.eu/article/bankers-bonus-cap-is-the-wrong-policy-says-bank-of-england-official/