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FSA to be given extra powers under new govt plans
The Queen has announced that the government is to crack down further on financial sector bonuses in a move that has been galvanised by Labour's recent involvement in the banking crisis.
Following the sharpest recession since the end of the Second World War, the government stepped in to inject billions of pounds into the sector to keep the likes of HBOS and Royal Bank of Scotland afloat during the downturn, though many cases of huge bonuses continued to filter out.
Queen Elizabeth II said: "Legislation will be brought forward to enhance the governance of the financial sector and to control the system of rewards."
Proposed measures put forward by Prime Minister Brown and his team include the strengthening of the Financial Services Authority's ability to take action on pay of those working in finance.
Speaking to the Daily Telegraph yesterday, one disgruntled senior fund manager said of the proposals: "The idea that a body can arbitrarily rip up legal contracts is deeply concerning. Never mind the problem of competition, the attack on the rule of law is far more frightening."
Posted by Jo Morgan
