Bonuses for bankers in UK could be clawed back

UK bankers may lose part or all of their bonuses even after they switch firms if they are responsible for losses at their previous employer, according to a Bank of England proposal.

The BoE’s Prudential Regulation Authority is asking for feedback on the plan designed to ensure that employees can be punished financially for excessive risk-taking that goes wrong.

The PRA is suggesting that an employee’s contract with any new firm would allow a penalty to be applied should the old employer determine he or she engaged in misconduct.