Nearly a third of the staff in the FSA’s enforcement division are to leave this year either through redundancy or being moved to another department, with new blood on its way.
The FSA says the enforcement division’s new team and structure will be in place by the end of November with a 20 per cent net reduction in numbers although the budget will remain the same.
A number of new hires from top city law firms and accountants are due to be announced shortly.
The restructuring is part of the regulator’s move to a more principle-based approach which it says requires highly skilled staff to interpret these principles.
In February the FSA announced in its 200708 budget that £50m will be allocated over the next 10 years to train staff about regulating in a principle based world.
The cull of staff began in January and will be complete in November.
An FSA spokeswoman says: “This is part of the FSA’s ongoing work to have the right quality staff to face the challenges of principle-based regulation and deliver benefits for both the industry and consumers.”