Bank Lobby Urges France to Further Limit Costs of Firing Traders
(Bloomberg) – A French Financial Services Association invites MPs to restrain more of the senior personnel at the expense of firing after only a severance pay was presented last year.
Jean-Charles Simon, CEO of Paris Europlace, said in an interview that the maximum monthly salary that banks should typically the maximum monthly salary should be cut to a significant extent to calculate the severance pay package for material risk buyers, including senior traders. Suggested that it be reduced by half.
Last year, France introduced the ceiling as part of a comprehensive bill aiming to support the country’s objection to the financial services industry. The CAP is connected to the maximum part of the annual fee used to determine the social security contributions of someone who is currently a figure of French abbreviation Pass, which is currently 47,100 € ($ 54.627).
Long -term employees may have the right to severance pay equal to gross wages for up to 20 months.
“The idea is to make the Paris financial scene more attractive by reviewing this amount, S said Simon. “For example, it can be halved to get too far away from the amounts of compensation paid in the UK.”
The government under President Emmanuel Macron was eager to attract Wall Street -style jobs and strengthen the Paris status as a major financial center in Europe. When Brexit forced many of the world’s largest banks to find new centers for operations within the European Union, the city benefited.
Simon, the French government is considering adopting a new law of attraction. Authorized, official discussions can start in the coming months, he said.
Representative of the French Ministry of Economy refrained from commenting.
Europlace also invites the government to expand the employee group that is exempted from France’s restrictions on overtime, including material risk buyers.
Simon, this movement, in recent years in the court “employees who have to pay important compensation about overtime allegations”, which they have to pay a few “cold shower” in the case of potential lawsuits, “he said.
According to the rules of European Banking, MRTs are personnel who may have a significant impact on the risks taken by a financial services company. This usually contains higher levels of traders.
Another change proposed by Europlace is to expand the authority to focus on the competitiveness of France’s financial regulators ACPR and AMF. In the United Kingdom, the Chancellor of Exchequer Rachel Reeves tried to take back the bureaucracy and pushed the organizers to prioritize growth.
Requests from Europlace come from the Wall Street banks about the political and financial stability of the country. To reduce the public deficit of France, higher corporate taxes and a new dividend tax law voted in February contributed to an impression that Paris’s attractiveness may be on the top.
“Some foreign players will send an important signal at a time when some foreign players may have doubts about the financial stability of France and more people can help withdraw into Paris,” he said.
-With the help of Sam Nagarajan and Nicholas Comfort.
There are more stories like this Bloomberg.com
