LONDON, Oct 22 (Reuters) - Regulators in Britain andelsewhere in the European Union are cracking down on illegal"allowances" that top up bankers' pay to skirt a cap on bonuses,a top EU regulator said on Thursday.
Andrea Enria, chairman of the European Banking Authority(EBA), said the watchdog will publish a report by year-end onwhether the 28-country bloc's national regulators comply withthe EBA's view on what type of allowances are acceptable.
"Our conclusions have been followed up," Enria told Reuterson the sidelines of a British Bankers' Association conference.
Under an EU cap banks cannot pay bonuses more than the fixedsalary, or twice that amount with shareholder approval, butbanks have topped up basic pay by awarding allowances. The EBAhas said that allowance should be classed as part of the bonus.
The EBA said last October most of the so-called role-basedallowances - regular payments to top up a banker's basic pay -breach EU bonus cap rules.
Enria said regulators were complying in all EU countries,including Britain, where most of the allowances had been paid.
"We are happy with what we are seeing," Enria said.
Banks have been forced to change their remunerationcontracts to ensure they comply with the EBA guidance. (Reporting by Huw Jones; Editing by Steve Slater)