Goldman Sachs has removed the cap on bonuses for its top bankers in the UK, according to a source familiar with the matter, months after the country axed the policy it had inherited from the European Union.

T he investment bank Goldman Sachs has become the first to remove its cap on bankers' bonuses following changes to UK laws introduced last year. The bank said this would give "greater flexibility" and was closer to what happens in other big financial centres such as Singapore and New York.

Goldman Sachs Group Inc. is preparing to scrap an EU-era cap on bonuses for hundreds of its highest paid staff in Britain, according to a person familiar with the matter.

Changes will allow the investment bank’s star performers to earn up to 25 times their annual salary

Goldman Sachs has informed staff in its London office that it will remove caps on banker bonuses, becoming the first big bank to take advantage of controversial changes to UK pay rules. The Wall Street lender told staff of the change in a video on Thursday in a move that is expected to be copied by rivals.

Material risk takers will be able to earn bonuses worth up to 25 times their salaries after the UK abandoned EU curbs last year