View more on these topics

Bosses that ignore FSA warnings will be replaced

FSA chief executive Hector Sants says the regulator is prepared to force out firms’ senior management that do not respond to FSA warnings.

Addressing the Mansion House conference on values and trust earlier today, Sants (pictured) argued that the regulator had a role to play in judging firms’ culture and ethics and should be prepared to intervene where necessary.

He said: “A poor culture at a firm often manifests itself in failures of governance or management – and in response to such failings, we have taken, and will continue to take tough action.

“For most firms that action shall be taken through the board. The ‘tone from the top’ remains critical and if a regulator is concerned, its first action should be exhorting the chief executive and the board to take the necessary remedial actions.

“I would hope that in most cases boards would respond to such warnings. If not, regulators may well have to resort to the stick of the authorisation process and if necessary, push for those individuals to be changed, or where necessary, require them to be.”

Sants also used the speech to attack the bonus culture at banks, saying it was the FSA’s responsibility to ensure that pay does not encourage poor risk management.

He argued that the key to restoring faith in the banking sector was for banks to rein in the bonuses they pay to staff.

Sants said: “Remuneration practices, or bonuses, have been a symbol – a lightening rod of society’s lack of trust in bankers – and to address the trust issue, this state of affairs has to be recognised and resolved.

“I believe that unless bankers demonstrate sensitivity and exercise restraint in this area, trust will not be restored.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 27 comments at the moment, we would love to hear your opinion too.

  1. Damn ~ you beat me to it Anonymous 1.

  2. Bye bye Bankaneers – NOT

  3. Wish I’d been at the Mansion House as I would have asked his opinion on the bonus culture at the FSA!!

  4. I agree with anonymous. Who will replace go old Hector? The FSA think they are the Gestapo. I hope there is a bunker in readiness for them.

  5. shame we can’t have the same rules for the FSA then !!

  6. Incompetent Regulators Awards Team 4th October 2010 at 3:54 pm

    Hollow talk from hollow man.

  7. I agree with anon – before the FSA start spouting off about banks, they need to rein in their own bonus culture, their dining out with bank bosses and other little back-pocket conflicts of interest that they’d rather weren’t publicised, not to mention the reward they get for not doing their job properly – namely fines for firms that they haven’t bothered supervising properly for 10 years, then suddenly decide to go in and slap on the wrist. A culture of ethics doesn’t start with the bank bosses, it has to start with the Regulator. Come on FSA, help us to believe in you again and maybe, just maybe you can restore the faith of the industry, so we can help restore the faith of the consumer.

  8. I know that the above comment of pot kettle is a bit unhelpful but where was our regulator between 2000 and 2007?

    Why is it that our regulator seems to have a fascination in making the life of an IFA as hard as possible when we seem to be still giving banks and major financial organisations an easy ride?

    Its okay to Mr Sants to talk tough but the FSA is being disbanded and replaced by the Bank of England as the FSA was found not to be fit for purpose.

    What the general public and the industry in general needs is a set of rules that we all understand rather than the scattergun approach that we seem to have at present. I also believe that talk is cheap and maybe it is about time that a top banking chief lost their fit and proper person status and therefore lost their position as an example to the rest of the industry.

  9. Who does this pr**k think he is. Going by what he said he should have been the first one to go. He is going to try to force people out for not following the regs. In other words not doing their job properly (or being incompetent). That being the case why are was Hector Sants not forced out over the bank meltdown.

  10. Comforting to know only replaced and not shot at dawn Mein Herr.

  11. My god, what about his own ethics, sending emails to all his staff on election day reminding them that if the conservative party won the election they would disband the FSA. Also, what about the bonus culture of the FSA, big bonuses for ineptness. Now what is the saying “Don’t do as I do, but do as I say”

  12. “A poor culture at a firm often manifests itself in failures of governance or management”

    Change the word “firm” to quango & he has written his own epitaph

  13. And FSA bosses who ignore warning (signs in the market) will be:

    a) Promoted b) Rewarded c) Sent to the House of Lords

    Delet that not applicable.

    Oh! They’re all applicable. Fancy that!

  14. I thought boards and management were controlled by shareholders !

  15. There are no words ( printable) to explain my utter disgust and contempt for these trough licking regulators.
    Comrade Sants should be sent to Vladimir Prison, or Siberia.

  16. Unbelievable hypocracy and arrogance of the man!

  17. Having visited what was East Germany I thought the Stasi were gone. How wrong can one be

  18. Come on Hector, let’s look at the FSA’s management, would you like a list of miscreants?

  19. What would you expect to hear from the man who told us to be afraid, be very afraid. He of the bonuses for failure culture.

  20. MR. JOGGA SINGH TEIDY 4th October 2010 at 8:58 pm

    Mr. Jogga Singh Teidy
    BA(Hons) RGN Cert. Ed. Dip SMgt SAYS…

    The problem is this: All our excutive bodies become impotent for some reason or another, when they have to deal with bigger organsiations of our society…this include the Health and Safety Executive…who in view should be pusing BP bosses, just as the pursue failed hotfood bars that cause food poisoning outbreaks. The same goers for Our London well know University…its excutive sacks a woman for complaing about sex abuse/assaults on her….and keeps the two blokes on…becuase she told police and her husband!

    Our common society of commoners by commoners is NOT RIGHT!

    So how do we put it right?

    1. We need to have talented dedicated people who will work for less, so as to stop these people being “upper classes” on public money, and bring then to a living in a terrace house or council house.

    We need to hold to account the outcome of their decsion making…called work…as we would any public employee, and dicipline and sack them via a warming system…of course having demoted them in the porcess.

    With out this reality, we have people at teh top who cannot think or make valid decsions to serve society, because their overpay and jobsecurity makes them incompetent? and is a hotbed for potential corruption? and hardening like hardened criminals that set thier their diserving ways?

  21. This from somebody that quit the FSA and sent email to employees not to vote conservative in view of their plans to abolish FSA. Then jumps ship and joins with the new regime… lack of credibility springs to mind!!!! unfortunately he is in charge.

  22. What an incredulous statement!
    Does Mr Sants propose running our major companies then?
    Watch out Mr Cameron he will be wanting to control you next!
    Sort out the FSA first then, maybe, people would have more respect for you, currently no one (apart from your mates at Canary Towers who are feeding you the wrong info) respects you!!

  23. One of the few things that I liked about self-regulation when it came in was that both the regulator and the regulated had regulations to work with. ‘Warnings’ are not regulations. I look forward to the court cases…

  24. The FSA is going….. mmmm NOT !! If they are being disbanded for being incompetent then why are the detrimental MMR and RDR still being driven forwards. The FSA is not being disbanded, the name may be going however the same people and the same regulations will be working in the new companies linked to the Bank of England. Just another ploy to cost us millions collectively getting all our stationary re-printed with new regulatory slogans etc. Please dont be fooled by all this rubbish !! It is time to leave this dead end industry before it implodes.

  25. Every comment reports the same frustration and disbelief, but what is going to change? The difference is the FSA and large institutions can make changes – a fractured and disenfranchised IFA community will not. Each bank has a mouthpiece to put it politely, FSA trade bodies are proven to be utterly toothless so we do not.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com