Advisers have welcomed the resignation of Money Advice Service chief executive Tony Hobman and called for his successor’s pay to be set considerably lower.
Hobman (pictured) informed the MAS of his decision to resign at a board meeting this week. He has faced a backlash from the Treasury select sub-committee and the financial services industry over his £364,000 remuneration package and the effectiveness of the £87m-a-year service in recent months, which is funded by a statutory levy on the industry. Hobman will continue working at the MAS during his six- month notice period.
The MAS board will carry out a review of the future role and remuneration of the chief executive and aims to appoint Hobman’s successor by the autumn.
Giving evidence to the Treasury select sub-committee inquiry into the MAS last month, FSA chairman Adair Turner admitted to MPs that in retrospect, Hobman’s salary was set “somewhat too high”.
Facts & Figures Financial Planners managing director Simon Webster says: “This guy should not have been allowed to keep his nose in the trough at such a ridiculous wage. It is absolutely obscene. The MAS is sunk. It was a bad idea that was badly executed, which has achieved nothing at huge cost to the industry and ultimately the client.”
Yellowtail Financial Planning managing director Dennis Hall says: “There needs to be a significant pay cut for the chief executive. I wonder whether we are now going see a service that is fit for purpose?”
Essential IFA managing director Peter Herd says: “He has done the right thing because he has failed. The service now needs a massive rethink of its objectives.”