May 2 (Reuters) - Goldman Sachs ( GS ) 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.

The cap sprung from a 2014 move by the EU, which the UK

exited six years later, to try to deter bankers from the kind of

excessive risk-taking that was blamed for the global financial

crisis of 2008.

It limited bonuses to twice the basic pay if shareholders

approved. However, banks often had to bump up the fixed salaries

to circumvent the cap.

Goldman's move would help it change the way it compensates

its "material risk takers", a class of employees whose

performance can have a big impact on the bank, the source said,

requesting anonymity as the details are confidential.

"This approach gives us greater flexibility to manage fixed

costs through the cycle and pay for performance," a Goldman

spokesperson said.

"It brings the UK closer to the practice in other global

financial centers, to support the UK as an attractive venue for

talent."

(Reporting by Niket Nishant in Bengaluru and Saeed Azhar in New

York; Editing by Arun Koyyur)