FSA boss says new intensive approach requires more resources
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FSA managing director Jon Pain says the regulator will need to continue to increase its staff budget to implement its new intensive supervision approach.
Speaking at a City and Financial Intensive Supervision Conference in London today, Pain said the regulator’s staff faced a number of “internal risks and challenges” including a “cultural shift” for its supervisors which will require an increase in its overall resource.
He said: “To continue to deliver and fully embed our intensive approach, we need to continue to increase our overall resource and ensure that the training provided enables supervision to deliver our agenda.
“But we also need to continue to deliver a cultural shift, where supervisors have a much tougher role, which demands supervision have a well-balanced analytic capability, good industry understanding and are prepared to take tough decisions.”
Pain said the FSA was improving its quality of supervision by introducing a new eight week induction programme for all relationship-managed supervisors alongside mandatory assessments of capability.
The FSA is also enhancing its T&C regime that requires all supervisors to demonstrate adequate levels of technical skill, behavioural competence and sector specific knowledge.
Pain told delegates that the FSA had increased its use of Section 166s, highlighted recently by Money Marketing, a regulatory device requiring firms to pay for costly external compliance checks.
Pain said that since the FSA had adopted its more intensive approach, it had completed 400 interviews with senior management figures in firms which had led to 30 individuals being withdrawn by their firms.
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Readers' comments (33)
PensionMan | 18 May 2010 1:28 pm
Appropriate name for someone who works at the FSA.
Quite how they need more than 3,500 people is beyond me.
Perhaps reallocating some individuals from IFA bashing to other areas might help?
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Anonymous | 18 May 2010 1:30 pm
Recession !! What Recession ??
While everyone else is tightening their belts the FSA go on spending (our) money to implement their latest novel way to regulate.
STOP !!! This has got to stop NOW - these leeches are out of control and just like the previous Government go on blindingly spending other peoples' money without a care in the world - with no cost benefit analysis or value for money considerations and with no personal penalty when they get it wrong (again !)
The FSA can do all their 'consultations' which are just like a MORI poll before the general election, and yet the true election result is the FOS results showing minimal complaints against IFAs while the FSA continue to turn a blind eye to the banks. The whole system is corrupt with these ex-bankers !!
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Anonymous | 18 May 2010 1:35 pm
Who supervises the supervisors ???
Where does this all stop - if it ever will ??
The way it's going att some point in the future there will be more supervisors than advisers !!
Carry on FSA in your own LA LA Land !!
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Michael Fallas | 18 May 2010 1:39 pm
Well if they had not wasted the Billions we have paid them since they came into being and did their job properly to start with they would have no problem with their own finances.
Sadly they have helped kill off their pipeline of funds and now the well is running dry.
It will be interesting to see how they can find the never ending flow of money they manage to waste in the name of regulation and justice.
The FSA is now part of the problem and sadly thanks to the Liberal Democrats we are stuck with them.
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Anonymous | 18 May 2010 1:42 pm
This guy has been at Lloyds TSB since 1973 - Just the kind of person needed to supervise IFA's - I don't think.
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How funny!! | 18 May 2010 1:42 pm
Comedic genius is our Pain the the FSA'rse!!
Just trying to read that one para again ... 'But we also need to continue ... tougher role, which demands supervision (HAHAHAHAHAHAHAHA!!) ... have a well-balanced analytic capability (OMG, please stop HAHAHAHAHAHA) ... good industry understanding (OMG, think I'm gonna wet myself now ... ) and are prepared to take tough decisions (HAHAHAHAHHAA ... oh boy, too late ...)
Why, oh why would HM Gov want to swell the ranks of the incompetent (rhetorical) ... they have too many fails against their names over last few years ... so, why do we need more of these chuffin' idiots??
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Anonymous | 18 May 2010 1:42 pm
O Well, more costs, less results, from a re-active rather than a proactive regulator, sorry can't be a regulator if you ar re-active.
So what next for the banks, nothing it seems, so they will be able to continue, and then when RDR starts they will be exempt - happy days for them
But the poor man/woman in the street O they will just be told that's Ok you can claim for your losses and the IFA industry( or what is left of it) will pay
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Compliance Rules!? | 18 May 2010 1:45 pm
Firstly let me say I am a controls person, I believe in regulation and the Law of the Land, but Entrepreneurs and compliance do not make good bed fellows! The day a company is run by its compliance department the end is near as progress comes to a grinding halt if not checked. Worse then this is the armageddon situation of a regulator running the country!
However, the Pain has spoken and real pain will soon commence to everyone’s detriment except the 8 week experts who will soon be telling us how to run our business…..into the ground of course. OMG, help!
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Anonymous | 18 May 2010 1:46 pm
While I do not disagree with the need for regulation these people at the FSA need to behave in the same way as every other business and focus their limited resources where they are needed. The financial advice sector is not a bottomless pit that can afford increased fees in order to finance more staff!
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Anonymous | 18 May 2010 1:48 pm
The Mafia is an organisation who believe that they are beyond the law and think that the laws of the land don’t apply to them. They extort more & more money by threats of taking away your livelihood if you don’t pay the protection money that they force you to pay.
They work on the premise of fear telling their victims that they “should be very afraid”.
Eventually their victims give up their businesses as they eventually find they are only working to keep their oppressors in a style of luxury that they could not afford themselves. The Mafia threaten that they will come after their victims for the rest of their lives.
When the Godfather feels that justice is catching him up he will do a runner with his ill gotten gains leaving the new henchman to try and bleed even more money from their victims.
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