Terry Smith, the chief executive of London-based broker Tullett Prebon, has weighed in on the European Union’s banker bonus cap rules – arguing that it is misconceived and “if anything, should be a remuneration cap”.

The European Parliament agreed last week to cap bankers' bonuses at a maximum 2.5-times salary. Speaking to Financial News following Tullett Prebon's annual results this morning, Smith said the rules were likely to be "detrimental for business, result in convoluted pay structures and increase fixed costs".