FSA 'will revoke banking licenses if bonus conditions are not met'

People in top banking jobs have been warned that their companies will have their banking licenses revoked if their bonus payouts do not adhere to Financial Services Authority (FSA) regulations.

Bank bosses have been told by the FSA that 60 per cent of payouts must be deferred - even for staff whose contracts conflict with this ruling, reports the Telegraph.

Many companies are believed to have lured staff to top banking jobs with their firms on the basis of guaranteed annual payouts, but the FSA edict has meant that banks will now have to renegotiate such deals.

One headhunter said: "These are tricky things to unpick."

"But cleverly, the FSA has put the onus on the banks to unwind the contracts, rather than itself getting embroiled in a complex legal row."

Last month, Adair Turner, chairman of the FSA, told Bloomberg that it was his organisation's role to regulate the sector, rather than making it "as large as possible", which he claimed some bankers want.

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Updated: 04 February 2010.
Categories: banking-and-financial-services, market-and-industry-news.