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FCA confirms £3.2m software write-off

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The FCA has confirmed it has had to write off £3.2m in “constructive loss” resulting from software licences it purchased.

Last year Money Marketing revealed how the regulator entered a one-year contract to purchase several software licences in which it made a prepayment in order to receive a discount.

In the regulator’s annual report, published today, it confirms that it had tried and failed to sell-on some of the licences to recoup some of the losses.

It says: “The FCA capitalised the remaining balance of £0.7m as an intangible asset, since at the time it believed it could realise value from on-selling some of the licences. This did not turn out to be the case and the assets have now been fully impaired in the year to 31 March 2016.

“The contract expired in May 2015 and has not been renewed.”

The report also reveals ex-chief executive Martin Wheatley is to receive £827,000 in his final months at the regulator.

He stepped down in September 2015 but is continuing to work until the end of July this year.

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 12th July 2016 at 4:49 pm

    Oh well, it’s only OPM, so what the hell? They’ll just factor it into the following year’s levies and no individual will be held responsible. No one ever is. Another of those “collective failures”, like the one that Hector Sants told the TSC about back in 2013

  2. What were these licences and who did they buy them from?.

  3. They should know better. Software salesmen are not regulated and don’t require any qualifications

  4. What a disgrace yet again from a incompetent organisation happy to waste our hard earned levies however they see fit !! Whoever authorised the purchase of these licences in the first place should now carry the can for the decision and be held to account. In any other business they would be out on their ear – why do I think that this will not happen here ?! The old boys network looks after itself as usual.

  5. It never ceases to amaze me, how much hatred and anger the FCA make me feel, in a otherwise cool, calm and tolerant man ……

    It is strange that ? when you are beholding to an unaccountable entity that wastes resource with such impunity.

    It reminds me of banquets of old…… people feasting and drinking with such gusto, while the faces of the poor pressed up at the windows with heavy hearts and empty bellies only to be pleased with the small joy, the smell of food would bring.

  6. This lot could not organise a pi55 up in a brewery.

  7. If this was a loss to a client it would be refunded to the client with 250 compensation for inconvenience and 8% simple interest a year. umm should the regulator fine itself and reduce our levy?

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