EU bonus cap: Proposed expansion curtailed

December 2013

Overview

On December 16, 2013, the European Banking Authority ("EBA") issued its final draft regulation on criteria to identify “Material Risk Takers” who will be covered by the EBA’s expansion of the upcoming EU banker bonus cap.

The final draft regulation caps fewer bankers’ bonuses than the EBA’s previous proposal did. However, because the EBA’s final draft came out sooner than expected (it was not supposed to be finalized until as late as March 31, 2014), the expansion will likely go into effect well before its previously anticipated implementation date of January 1, 2015.

This Regulatory brief highlights our US view of the significant changes, given that the cap applies to subsidiaries and branches of EU banks located in the US.

Contact us

Dan Ryan
Financial Services Advisory Leader
Tel: +1 (646) 471 8488
Email

Alison Gilmore
US Asset and Wealth Management Marketing Leader
Tel: +1 (646) 471 0588
Email

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