Banking bonuses: new curbs

MOST UK financial firms will be able to avoid new European rules aimed at limiting bankers' bonuses .

In its updated remuneration code, the Financial Services Authority (FSA) said all but the biggest banks will be exempt from certain guidelines laid out last week by the Committee of European Banking Supervisors (CEBS).

Lower-tier firms - like smaller banks, hedge funds and asset managers - will not have to apply a tighter cap on the proportion of bonuses paid in cash.