The UK is removing the cap on bankers' bonuses as part of post-Brexit financial regulation changes. The cap, in place since 2014 to curb risk-taking, limited bonuses to twice the basic salary. Regulators cited "unintended consequences" and less flexibility as reasons for its removal.
While some bankers initially disliked the cap, many now prefer higher basic salaries. Critics fear more risk-taking, but regulators can defer or claw back bonuses for undue risk. The decision, initially made by the short-lived Liz Truss government, has faced political shifts.
Reactions to the move are mixed, with some viewing it as a boon for the banking industry and others as an insensitive choice amid economic challenges.