Bankers' bonuses will no longer be capped from next week, City regulators have announced, as another European Union rule is scrapped after Brexit.
Under the current rules, introduced in 2014, bonus payments are limited to twice a banker's salary.
City figures and many in government have pushed for the cap to be removed, saying it was preventing London's drive to recruit and retain the best talent.
Coming up next Tuesday, the Bank of England's Prudential Regulatory Authority (PRA) confirmed this rule will no longer apply.
It was one of the few changes proposed in former chancellor Kwasi Kwarteng's infamous mini-budget a year ago that was kept when Chancellor Jeremy Hunt took over.
The PRA said in a report concluding a consultation carried out with the Financial Conduct Authority, that “a bonus cap is not routinely imposed in other leading international financial centres outside the EU”.
The final policy decision is to remove this barrier in the UK.
"This is an obscene decision," said Paul Nowak, general secretary of the trade union body the TUC. "City financiers are already enjoying bumper bonuses. They don’t need another helping hand from the Conservatives.
"At a time when millions up and down the country are struggling to make ends meet – this is an insult to working people."