City of London banks agree to support G20 bonus reforms

15 October 2009

In a competitive and global business, leading international banks have recently stated that banking remuneration must be consistent with effective risk management and there must be national and international consistency on this issue.

The UK subsidiaries and branches of leading overseas banks have agreed to support the implementation of reforms to bank pay agreed by the G20 in Pittsburgh, Financial Services Secretary Lord Myners announced today.

Bank of America, Merrill Lynch, Citigroup, Credit Suisse, Goldman Sachs International, JP Morgan Securities Ltd, Morgan Stanley, Nomura and UBS have confirmed their commitment to the FSA Rule and supporting Code on remuneration practices, published in August and coming into force on 1 January 2010.  They have also pledged their full support for the G20 agreement which sets global standards for the implementation of the Financial Stability Board’s remuneration principles.

EU banks with major London branches, BNP Paribas, Deutsche Bank and Société Générale, confirmed that they will implement the G20 agreement in accordance with their home regulator and will seek to voluntarily comply with the FSA Rule on Remuneration for their UK based employees.

In a joint statement, the banks said:

"In a competitive and global business, banking remuneration must be consistent with effective risk management and there must be national and international consistency on this issue.  We welcome the global nature of the G20 remuneration reforms and will work with the FSA and regulators in our home countries in adopting the reforms, recognizing that all G20 nations have also committed to their implementation to ensure a level playing field.”

 

Press release

 

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