Bank of England to check if allowances comply with EU cap

The Bank of England is scrutinising allowances awarded to top staff by banks in an effort to establish whether they are a covert way of avoiding a new EU cap on bonuses, a senior official at Britain’s central bank said yesterday.

From next year, EU bankers’ bonuses can be no higher than fixed salary, or twice that amount if a bank’s shareholders give their approval.

However, HSBC, Lloyds, and Barclays are all considering giving top staff monthly or quarterly allowances to boost fixed pay.