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Angela Knight, Executive Director of the British Bankers Association has been warning that the rules would be "significant challenges". Photo: Alamy

There is consternation in the whole of the City yesterday after the Committee of European banking supervisors has published a set of guidelines compensation fear much that could lead to enterprises more leave London for cheaper countries rules.

Angela Knight, Chief Executive of the British Bankers' Association, has warned that rules would create "significant challenges", which part of the thinking of many said that compensation restrictions will be a lot less attractive location in London.

"If such rules have been applied all over the world, people would be ok with it, but it is the lack of rules of the level playing field which is the biggest problem,"said Jon Terry, a partner at PricewaterhouseCoopers."

Of rules, which are subject to a 30-day consultation carried out in the future only individuals will receive 10pc of their premium upfront in a given year.

Committee of European banking supervisors prosposals are as follows:

? Borders to apply in all areas of business inside/outside EU

? Prohibits the related performance golden parachutes

? Initial bonus subjected to claw back

? Large bonus could not be purely grant initial cash.

? Should be an appropriate between basic and premium wage rate.

? variable to be deferred for 3 to 5 years old pay 60pc 40pc

? Governments must be repaid before the premiums paid.

? Contracts must recognize the regulations.

? Information on the compensation available to shareholders.

? No multi-year contracts.

? Staff cannot cover the risk bonus is reduced.

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