×
ECR

Victory for common sense as controversial bonus cap is voted down

3 July 2013

Victory for common sense as controversial bonus cap is voted down

Syed Kamall MEP today welcomed the decision by the European Parliament to drop a proposed bonus cap for fund managers after months of fraught negotiations between MEPs.

Syed Kamall MEP today (Wednesday) welcomed the decision by the European Parliament to drop a proposed bonus cap for fund managers after months of fraught negotiations between MEPs.

Although such a proposal had been adopted several months ago by the Economic and Monetary Affairs Committee, Dr Kamall worked hard to persuade his colleagues of the inappropriateness of such an initiative for the fund management world.

The bonus cap that was introduced for bankers as part of the Capital Requirements Directive was based on the logic that banks are using their own money to speculate on the markets, and therefore are systemically relevant. Fund managers are investing their clients’ money so their interests are already aligned to a far greater extent.

Dr Kamall suggested a compromise which increases investor protection by deferring a big chunk of a manager’s bonus as well as making sure investors know what the pay policy of a fund management company is.

He said: “Strengthening the financial system is absolutely vital, but we need to do so without becoming vindictive.

“The bonus cap would not have helped stabilise the financial system. It was always a populist idea that the Left supported because of their hatred of high pay. I have nothing against high pay so long as the person is not being rewarded for failure.

“The bonus cap would have been hugely damaging to the European asset management industry, which looks after the pensions and investments of millions of Europeans. That is why I am very pleased to see that the centre right and liberal groups have seen sense and backed away from this misguided idea.”

SHARE

ECR

OUR TWEETS

ECR Europe's Future

4 minutes ago

It should be remembered that the constant transfer of competences from the national level to the #EU level, without… twitter.com/i/web/status/1…

ECR Europe's Future

7 minutes ago

We have a strong feeling that decentralising the #EU is in the common interest of the entire #EUropeanUnion. We see… twitter.com/i/web/status/1…

ECR Europe's Future

40 minutes ago

We believe in a #EUrope of sovereign nations. We must stop the process of #EU centralisation. We believe that str… twitter.com/i/web/status/1…

ECR Europe's Future

an hour ago

We want a "True #Europe" that recognises its roots and defend its values; not one of supranational institutions tha… twitter.com/i/web/status/1…

ECR Europe's Future

an hour ago

The greater the distance between citizens and authorities, the less trust in those authorities. That’s why we call… twitter.com/i/web/status/1…

ECR Europe's Future

an hour ago

The discussion on the #FutureOfEurope is a sterile discussion of unintelligible notions; of projects and promises t… twitter.com/i/web/status/1…

ECR Group

an hour ago

ECR Group Co-Chair Ryszard Legutko cuts the ribbon on the @Reset_EU_ECR event in #Bucharest 🇷🇴 Join us now ⤵️ 🔴 We'… twitter.com/i/web/status/1…

ECR Europe's Future

an hour ago

We're live! 🔴 twitter.com/Reset_EU_ECR/s…

Anna Fotyga - Biuro Poselskie

6 hours ago

7 years have passed since the illegal annexation of #Crimea. Our non-recognition policy remains unwavering, as said… twitter.com/i/web/status/1…

Anna Fotyga - Biuro Poselskie

7 hours ago

#Iran has the highest rate of #executions per capita. In many cases the #deathpenalties are executed after flagrant… twitter.com/i/web/status/1…





© 2020. All rights reserved. European Conservatives and Reformists Group