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FCA bosses delay bonuses until closed book probe completes

FCA senior executives have reportedly decided to defer their bonuses until a probe into the handling of media reports surrounding its review into closed book policies is completed.

According to Sky News, nine senior executives, including chief executive Martin Wheatley, have said they will not accept any bonuses until the investigation is completed.

The FCA refused to comment and said it would reveal details of individual pay in its annual report.

Sky News reports the nine executives are expected to receive their bonuses once the enquiry is completed.

They include director of supervision Clive Adamson; director of markets David Lawton; general counsel Sean Martin; director of enforcement and financial crime Tracey McDermott; director of communications Zitah McMillan; director of authorisations Victoria Raffe; chief operating officer Lesley Titcomb; and director of policy, risk and research Christopher Woolard.

On 28 March, the Daily Telegraph first reported the regulator was concerned legacy customers are locked into poor investments by steep exit fees and insurers may be “exploiting” them by levying large fees to subsidise other parts of the business.

The report prompted several insurers’ share price to plummet, including Resolution, Legal & General, Aviva and Phoenix.

The FCA was forced to issue a clarification statement at 2.30pm explaining the scope of the review in more detail. At 6.30pm, the regulator issued a further statement saying it would carry out an investigation into its handling of the issue.

In April, Wheatley admitted the regulator’s handling of media reports on the issue was “not the FCA’s finest hour” and that it was right that the watchdog had come under scrutiny.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Nick Pilkington 27th June 2014 at 8:56 am

    I fail to understand why bonuses are considered normal. Surely a bonus should be for some exceptional performance not for simply doing your job.

  2. Ditto Nick !!

    Also note the word “Delay” lets not jump up and down with joy, or vindication just yet !!

  3. Just who decides on ~ or, more to the point, has any power to challenge ~ whether or not any bonuses AT ALL should be paid?

    Who approves the size of the bonus pot?

    Clive Adamson has not one but TWO major screw-ups on his recent record. On what basis will HE qualify for any bonus? He should be given a pay CUT, not a bonus.

    What about the regulator using its (our) resources in a way that gets the most value out of the effort that it makes, whilst delivering significant benefits [any benefits whatsoever] to low risk and compliant businesses through better focussed inspection activity, increased use of advice for businesses, and lower compliance costs?

    Given the foregone response to any such questions and the TSC’s complete lack of power to challenge them, will it even bother to ask them?

    The gravy train’s still rolling merrily along and there’s nothing anyone can do about it. Even more dispiritingly, virtually no one, least of all APFA, is even TRYING to do anything about it. Even if APFA were to try to convene yet another of its fruitless meetings with the FCA, it [the FCA] would probably refuse even to allow the subject to be included on the agenda.

    It really is a desperate state of affairs.

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