After introducing a policy of punishing traders who exhibit improper behavior, Deutsche Bank (DB) has seen some of its top talent walk out the door.

According to the Financial Times, Europe's largest investment bank said that it would no longer reward its top traders with a bonus or promotion if they are disruptive or are not acting like a team player. As a result, some of its top employees have decided to find a new place to work.

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"We definitely are seeing leakage," Colin Fan, the lender's co­head of investment banking told the FT. "Some people are purely financially driven and they're going to less regulated spaces, maybe it's tech, maybe it's hedge funds; we wish them well. These are people that probably won't fit into the new banking environment anyway."

Fan made a name for himself this year after a video went viral in which he criticized Deutsche Bank traders behavior, saying that "some of you are falling way short of our established standards," and that being "boastful, indiscreet or vulgar is not OK."

The bank has been undergoing some bad PR in recent years as it has become the subject of one investigation after another.

In  June, Germany's financial regulator BaFin ordered Deutsche Bank to do more to make sure that its traders weren't manipulating commodity prices. In July, New York's banking regulator called for the government to install monitors inside the U.S. offices of Deutsche Bank as part of an investigation into possible foreign-exchange manipulation. Just a month later BaFin, extended its investigation into alleged interest-rate manipulation at Deutsche Bank.

But Deutsche Bank isn't the only financial institution that its bankers on a short leash to try to ensure proper behavior. English bank Barclays is implementing a companywide bonus policy this year that takes into account individual adherence to the bank's values and behavior guidelines.

And hedge fund Point72 Asset Management founded by billionaire Steven Cohen has introduced a 4 percent extra bonus for employees who keep to the company's compliance and ethics rules.

So where are the traders going who presumably want to behave badly? Many of them are heading to smaller, non-traditional investment banks and financial institutions that don't require as much regulatory scrutiny.

TagsDeutsche Bank, Barclays, Bankers, Bad Behavior