FSA issues bank licencing threat over bonuses - papers

In issuing the ultimatum, the FSA told bank bosses 60% of all pay must be deferred, with no exceptions, the Telegraph reports. Many of the global players have appealed to the regulator against the plans, in particular about pre-existing employment contracts guarantying bonuses over a year or more. But according to an employee at one of the banks: "The message came back that while the FSA agreed that it does not have jurisdiction over contractual law, it does have jurisdiction over issuing bank licences in London, and that we should go away and unwind the contracts." Full story...