Bankers’ remuneration system must be reformed, says financial secretary

Bankers have not shown taxpayers they are willing to learn and reform, the financial secretary says.

Mark Hoban told the British Bankers’ Association the industry needs to reform its remuneration system if it hopes to regain public trust. While he acknowledged changes should be led by the industry, he said the government had a role to play, too.

Hoban said the government would ask the Financial Services Authority (FSA) to “examine further options in the forthcoming review of its remuneration code”.

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He said the Treasury would look into bringing in a new financial services sector-wide remuneration disclosure regime, reports the Telegraph.

Hoban concluded: “By visibly reforming the way they operate, banks can show that they exist to serve the whole economy, not just their own interests.”