Standard Chartered's attempt to claw back bonuses paid to staff they consider responsible for its current predicament may face legal issues, say lawyers and investors; it could also represent a test case as to the enforceability of the new UK rules put in place last year allowing banks to try and recover bonuses from bankers they deemed acted irresponsibly up to 10 years after they were paid out. Clawbacks face several other challenges, including the difficulty of claiming back funds where a banker has moved to another part of the world or another company. The Financial Services Authority (FSA) has been investigating whether RBS should be forced to pay out any bonus payments made by employees who have left the bank since May 2010. Standard Chartered has declined to comment.
Standard Chartered's attempt to claw back bonuses paid to staff they consider responsible for its current predicament may face legal issues, say lawyers and investors; it could also represent a test case as to the enforceability of the new UK rules put in place last year allowing banks to try and recover bonuses from bankers they deemed acted irresponsibly up to 10 years after they were paid out. The Financial Services Authority (FSA) has been investigating whether RBS should be forced to pay out any bonus payments made by employees who have left the bank since May 2010. Standard Chartered has declined to comment.