EU advocate general throws out UK challenge to its cap on bankers' bonuses

The EU’s advocate general has rejected the UK’s challenge to cap on bankers’ bonuses.

The UK had tried to argue against the EU rule, which limits a bonus to no more than a banker's fixed pay, or twice that level with shareholder approval.

Britain had said the law goes beyond the EU's treaty powers by impinging on pay. The legislation will affect bonuses that are handed out in early 2015.

Advocate General Niilo Jääskinen ruled that the limit on bankers' bonuses compared to their basic salary was valid.

The European Court of Justice said in a statement: "In his opinion today, Advocate General Niilo Jääskinen suggests that all the UK’s pleas should be rejected and that the Court of Justice dismiss the action."

While advocate general opinions are non-binding, they are generally followed by the court in most cases.

The court is expect to issue its ruling on the UK challenge in early 2015.