International banks are cashing in on the back of their staff bonuses according to foreign exchange specialist, Currency UK.
The company has seen a dramatic rise in bankers using its service to transfer bonuses, which have been paid in US Dollars, back into Sterling.
Their employers have been charging British staff fees of up to £2,500 just to transfer their bonuses into pounds. Adrian Jacob from Currency UK explains: "International banks pay their staff bonuses in US Dollars. They are then charging UK-based staff fees of between one and three per cent to transfer this cash back into Sterling which is astronomical.
"We undertook one recent transaction for a banker who had received a $250,000 bonus. The international bank she worked for had quoted a charge of one per cent to transfer the sum into pounds.
"Currency UK was able to offer a far better exchange rate, coupled with no fees, saving the banker in question £1,400. This seems to be a clear case of the banks cashing in on their own staff."
Although tough new rules restricting bankers' bonuses were approved by European Union lawmakers last month, it will be winter's pay season before this takes effect.
Millions of pounds in bonuses are therefore being paid out ahead of that deadline, with many being paid in US Dollars, and city professionals are naturally keen to retain as much of the cash for themselves rather than giving it back to their employer or other banks.
Currency UK has previously warned small companies.
Posted in Daily Market News on May 30 2014
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