The cap limiting bankers’ bonuses to 200 per cent of annual wage has been scrapped by chancellor Kwasi Kwarteng in his mini-budget.
The EU-wide cap was imposed in 2014 to discourage the kind of profit-chasing that some critics stated triggered the monetary crash of 2008.
It restricted annual bonuses to 100 per cent of wage – or 200 per cent if shareholders permitted – to be able to give much less of an incentive for risk-taking.