EU bonus cap threatens the future of London FX

Syed Kamall is member of the European Parliament for London
Syed Kamall, MEP for London

A cap on bank bonuses due to come into effect as part of the European Union's fourth Capital Requirements Directive (CRD IV) recently sparked a legal challenge by the UK Treasury, and politicians and lawyers believe the cap must be avoided if London is to retain its position as the largest global centre for foreign exchange trading.

The rules, which were approved by the European Parliament in April, would limit bankers' bonuses to 100% of their annual salaries, or 200% if allowed by shareholders