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FCA chief to pocket £65,000 bonus for first year’s work

Bailey tops bonus tree but regulator cuts overall staff budget


FCA chief executive Andrew Bailey was awarded a £65,000 bonus on top of his £330,000 salary for his first year’s work at the top of the regulator, accounts released today show.

The £65,000 bonus will be split, with a £26,000 payment received this March, and the remainder in March next year subject to approval from the FCA’s remuneration committee.

Other senior staff to receive performance related pay-outs include director of strategy and competition Christopher Woolard, whose £50,000 bonus topped up a £300,000 salary, and outgoing chief executive Tracey McDermott, who received an £11,000 bonus and £284,000 in salary for her service during the year.

93 per cent of FCA staff received a bonus in the year. Around 60 per cent received bonuses of between 10 and 20 per cent of salary. 4 per cent received bonuses of between 25 per cent and 35 per cent, the highest on offer.

The regulator’s seven non-executive directors were paid a total of £274,000.

Cost cuts elswhere

Overall, however, the FCA has cut its staff costs by £2.2m, despite increasing headcount by 65 through the year, as the regulator looks to move away from the use of contractor and temporary staff.

The regulator revealed that staff costs had been driven down by efforts to reduce short-term resources “who typically incur higher costs than permanent employees”.

At the same time, average staff numbers over the year increase from 3,570 to 3,635.

The FCA upped its surplus from £10.3m to £56.7m and confirmed that it had gathered an extra £26.8m in fee income from £517.1m to £543.9m.

The amount of penalties the regulator collected, which are diverted to the Treasury dropped significantly, from £877.2m to £189.2m.

Fight against pension scams continues

The FCA today also released an annual report on its enforcement activities. Giving an update on its work on pension scams, the report says the regulator has established a team to give “intelligence and cases” to specialist supervision and enforcement.
In 2016/17, the team created 766 intelligence logs.
The report says: “Since its inception, the team has become the hub of our efforts against pension scams by aggregating all of the intelligence that flows into the FCA. This team also liaises and shares intelligence with The Pensions Regulator, the Treasury, HMRC and the National Fraud Intelligence Bureau under the umbrella of Project Bloom and ScamSmart.”



How much are advisers charging for pension transfers?

Defined benefit pension transfer charges are being put under the microscope again as the regulator turns over more potential conflicts of interest. With the British Steel Pension Scheme the latest to dominate headlines and the FCA ready to interrogate further as it extends its review to include all firms authorised to give pension transfer advice, […]


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There are 11 comments at the moment, we would love to hear your opinion too.

  1. Director of strategy and ‘competition’; bonus £50,000, what ‘competition’? The scammers and unregulated investment failures? I think the FCA have lost that one?

    Chief Executive, salary £330,000 and bonus of £65,000. For what exactly? Have you seen the scammer numbers?
    How about a 1% cap?
    You could not make this up.

  2. Whilst I am sure there have been many positive outcomes, again there is no clear documentation to clarify what justifies these bonus payments. If the stated goals have been reached, great, but what where they?

    The regulator preaches but unfortunately does not practice its own guidance concerning clear charging and service agreements. From the outside looking in this looks like a payments agreed with no actual parameters.

    So millions stolen under pension freedoms, financial service industry warned about inducements, clear disclosure and they are to receive a bonus which is funded for what and by?

    Funny old world, one rule for them, another for everyone else.

  3. So with 260 working days a year (ignoring bank and public holidays) Mr Bailey’s pay rate is equivalent to £1,519 per day. Then there will be the pension contributions and in the future a potential knighthood. And they talk about advisers providing value for money. Their actions speak so loud I can’t hear a word they say.

  4. Robert Milligan 5th July 2017 at 4:47 pm

    utterly disgraceful how on earth can this be right/just or even justifiable, the Basic wage is unjustifiable, I will do his job for 50% of his basic, cover my own costs and would not ask for a bonus

  5. Bonus? Pigs at the Trough!!

  6. Julian Stevens 5th July 2017 at 8:30 pm

    For public sector employees (the FCA is after all a statutory body), such remuneration packages seem to be inordinately extravagant.

    By just what criteria are these bonuses determined and who approves them? Certainly no external body. Has Mr Bailey done anything tangible to address the FCA’s “sorry history” to which he alluded shortly after taking office? Nothing that I’ve yet seen.

    Every so often, the FCA refers to its “stakeholders” (i.e. those forced to fund its lavish existence), yet no meeting of stakeholders is ever convened to approve or veto the directors’ salaries and bonuses, as is convention in the private sector. Why not? Ah, as David Kenmir was wont to say, that’s different. I beg to differ.

    The FCA seems to have carte blanche to pay its staff and directors whatever is damned well pleases. So it does. We think our directors are doing a wonderful job so we’re going to pay them all these massive bonuses and anyone who disagrees can go jump in the lake. An unbridled monster trampling roughshod over anyone or any body that dares to try to stand in its way (as it was described at least 25 years ago by an independent think tank). That’s the bottom line isn’t it? Nothing’s changed.

  7. He will also probably be Knighted at some point, he doesn’t even reply to emails and letters. I know from my own experience, just another chinless wonder.

  8. “How about a 1% cap?”

    “Funny old world, one rule for them, another for everyone else.”

    “utterly disgraceful”

    “Bonus? Pigs at the Trough!!”

    “For public sector employees (the FCA is after all a statutory body), such remuneration packages seem to be inordinately extravagant.”

    I hope my adviser colleagues don’t mind my quoting them (from their above posting) but all these could illustrate why the country needs a change of government and attitude to fairness. Whilst I fully admit that the last Labour government weren’t much better than the Tories, I think and hope that the current opposition are made of better stuff.

    Sorry but I couldn’t resist posting this (just in case we are lucky enough to get another election).

  9. Steven Pearman 6th July 2017 at 3:50 pm

    @Patrick Schan

    So you think that putting borrow more to spend more Corbyn in power would curb the gravy train. I suggest to you it would make it far worse and turn us into the next Greece / Spain / Italy etc.

  10. I am utterly ashamed……..

    Ashamed at the waste of my clients money
    Ashamed for all people who have lost many thousands of pounds from the failed regulation
    Ashamed for the very many public service employees who continue to have their resources cut and minimal wages, and minimal rises whilst these parasites suckle from the cash cow unchecked and unaccountable

    I therefor make a public apology to all the clients of the financial services industry, and public service employees, this is not just a very firm slap in the face but a insult to plain common decency…

  11. Yes, all is good.

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