The UK Government has lodged a legal challenge with the European Court of Justice against the rules in the new Capital Requirements Directive capping variable remuneration of banks' material risk-taking staff. The UK Government argues that the cap will lead to an increase in fixed salaries, undermining, rather than advancing, the legislation's financial stability objective. It also raises issues on compatibility of the cap with the EU Treaty and on the extent of powers delegated to EBA. (Source: Legal Challenge Launched into New Rules on Bankers' Pay)