Morning papers: FCA under pressure on bank bonuses

The Treasury Select Committee has argued that the Financial Conduct Authority should extend its regulations on bankers’ bonuses to front-line staff, the Telegraph reports.

Following a record fine imposed on Lloyds for the mis-sale of Isas and income protection insurance, TSC chairman Andrew Tyrie wrote to FCA chief executive Martin Wheatley urging him to clamp down.

Mr Tyrie said: “Incentives have been deeply misaligned for significant numbers of front-line staff, not just highly remunerated traders or the most senior executives. Deep cultural change is needed.”

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London bubble fears reignited by report

A desire for high-end London property for purchase by wealthy foreign buyers is creating a real risk of a housing bubble, The Guardian reports.

The paper says a special report from economic forecasting group the EY Item Club said the influx of wealth buyers has created the conditions for a housing bubble in the capital.

According to the Guardian, estate agents, politicians and the Royal Institute of Chartered Surveyors have all raised fears that the UK could see a repeat of the 2008 property crash.

Andrew Goodwin, senior economic adviser for the EY Item Club, told the paper: “House prices across most of the country remain well below their pre-crisis peaks and there seems little danger of a bubble developing.

“But London, which is suffering from a combination of strong demand and a lack of supply, is increasingly giving us cause for concern.”

One in three payday borrowers miss repayment plan

A third of payday loans are not repaid on time and half of all payday borrowers roll their loans or take out more within weeks, The Independent reports.

The Independent says the Competition Commission report suggests most people who use payday lending services do not fully understand the costs involved.

Landmark ruling spells trouble for tax avoiders

The crackdown on tax avoiders by HM Revenue and Customs has gone a step further with a landmark ruling, which means tax avoiders using certain schemes could face significant penalties, the Daily Mail reports.

The paper reports that a tax tribunal ruled two company directors had been negligent when they joined an avoidance scheme. This piles pressure on boutique accountancy firms which specialise in helping wealthy people pay less tax.