Overseas banks agree to G20 bonus reforms

Leading foreign banks have agreed to support the implementation of reforms to bankers pay agreed at the G20 summit in Pittsburgh.

The banks, including Merrill Lynch, Credit Suisse, Goldman Sachs International and JP Morgan, have confirmed their commitment to the Financial Services Authority reforms to the remuneration practices.

The new rules were published in August and will come into effect in January.

European banks with major London branches, such as BNP Paribas, Deutsche Bank and Société Générale, also confirmed that they will implement the G20 agreement in accordance with their home regulator and would seek to voluntarily comply with the FSA rule on remuneration for their UK based employees.

A joint statement published by the banks said: 'In a competitive and global business, banking remuneration must be consistent with effective risk management and there must be national and international consistency on this issue.

'We welcome the global nature of the G20 remuneration reforms and will work with the FSA and regulators in our home countries in adopting the reforms, recognising that all G20 nations have also committed to their implementation to ensure a level playing field.'

FSA secretary Lord Myners added the financial services industry had to take a 'responsible and long-term approach to remuneration' to retain competitiveness and regain public trust.