Queen's Speech: FSA to gain new powers over bank bonuses

Speaking at the state opening of Parliament, the Queen revealed new legislation to increase the powers of regulators to "improve governance and control rewards". The move was widely expected, and the FSA will now gain additional powers to restrict bank bonuses which the Government says caused the financial crisis. Regulators at the FSA will gain the power to void employment contracts it considers ‘overly risky'. It is also introducing a new code of practice for banks, which will require them to limit bonus guarantees to no longer than a year. Both banks and insurers will be req...