LONDON, Oct 22 (Reuters) - It is too late to change theallowances paid to top banking staff that have been deemed tobreach European Union law, a senior Bank of England officialsaid on Wednesday.
The EU's banking watchdog, the European Banking Authority(EBA), said on Oct. 15 that "role based" allowances being paidby banks were nearly all in breach of the bloc's cap on bankerbonuses.
Bonuses have been capped at no more than fixed salary, ortwice that amount with shareholder approval, and banks hadargued the allowances were part of fixed pay. Britain ischallenging the bonus cap in the EU's top court with a rulingexpected sometime in early 2015.
Andrew Bailey, BoE deputy governor and chief executive ofthe Bank's Prudential Regulation Authority, said it wasimportant for banks to read the EBA's opinion.
"We will discuss that with them... My own view is it is toofar into this year as a matter of good practice to changeanything," Bailey told the UK parliament's Treasury SelectCommittee. The next round of bonuses, covering performance for2014, will be paid in early 2015. (Reporting by Huw Jones; Editing by Elaine Hardcastle)