CJEU finds against UK on bonuses: The CJEU has determined that the EU was within its powers to adopt under the EU Treaty the legislation that fixes the ratio of variable to fixed remuneration (within the fourth Capital Requirements Directive and Regulation package (CRD 4)). The UK had argued that the Treaty provisions on freedom of establishment and to provide services did not include these powers, and had also raised several other objections, including that the legislation was disproportionate, violated the principle of legal certainty and infringed data protection rules and the right to privacy. It also said it was illegal to confer powers under CRD 4 to EBA. The Advocate General said the UK's arguments should be rejected. Treasury reacted by writing to the Financial Stability Board (FSB), saying it would not pursue the challenge as it seemed clear there was minimal chance of success, but stressing its view that the CRD 4 measures have the effect of driving up fixed remuneration and thus leaving less available for clawback. It asks for global remuneration standards, and for regulators to revisit how remuneration that has shifted towards the fixed compensation model can achieve the objective of supporting sound risk taking. The British Bankers' Association (BBA) said it would continue to support Treasury. (Source:CJEU Finds Against UK on BonusesTreasury Writes to FSB on Bonuses and BBA Supports Treasury on Bonuses)