Advisers have questioned the move by former FCA director of communications Zitah McMillan, who stepped down in the wake of the Davis review, to take a senior role at a prominent payday lender.
McMillan joined DFC Global Corp, whose operations include The Money Shop, in January as international chief executive. She will head the firm’s global operations excluding the UK, US and Canada. Her remit will mainly cover Eastern Europe, Spain and Scandinavia.
DFC’s corporate entity in the UK, Dollar, is the UK’s second-largest payday lender with a 24 per cent share of the market. DFC operates under the trading names of Payday UK, Payday Express, The Money Shop and Ladder Loans.
Thameside Financial Planning director Tom Kean says: “Given McMillan left the FCA under a cloud, to join an industry that is not well thought of is an odd move if she wants to improve her own standing.
“But for Dollar it will be a coup to appoint a senior figure from the regulator.”
Philip J Milton & Company managing director Philip Milton adds: “This appointment raises a wry smile. Perhaps if you cannot get a job in a respected industry you have to work in a discredited industry.”
The FCA announced McMillan and former director of supervision Clive Adamson were leaving as part of a restructure in December. A week later, the findings of a review into the FCA’s handling of a bungled media announcement that caused insurers’ share prices to tumble in March singled out McMillan, Adamson and other executives for criticism.
In July, Dollar was ordered by the regulator to carry out a past business review and refund customers £700,000 paid in interest and default charges.
Where are they now? The FCA’s revolving door into the private sector
Clive Adamson: The former director of supervision stepped down from the FCA in December. He was on six months’ notice and has been on gardening leave since January. He is reported to be taking up a non-executive role at Prudential.
Sheila Nicoll: The former FSA director of conduct policy, who left in April 2013, joined Ernst & Young as a senior adviser in the company’s asset management practice six months’ later.
Christina Sinclair: The FCA’s acting director of retail left the regulator to join Barclays in July 2013 as global head of compliance for wealth and investment management.
Margaret Cole: The former director of enforcement at the FSA announced she was leaving the regulator in February 2012. A month later it was reported she was to join PwC as a senior legal adviser and member of the executive board.
Jon Pain: The former managing director of supervision resigned from the regulator in July 2010 and joined KPMG as a partner the following July. In 2013 he joined Royal Bank of Scotland.
Sir Hector Sants: Former FSA chief executive Sants joined Barclays in January 2013. In November of the same year, he stepped down after taking a leave of absence due to stress. He has since joined management consultancy Oliver Wyman.