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FCA pension scheme drives £58m loss

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The FCA made a loss of £58.3m in the year to 31 March 2015, its annual report shows.

This compares to a £29.3m loss in 2013/14.

The FCA says the figure is in line with expectations and has been driven by a larger loss in its defined benefit pension scheme, plus consumer credit costs.

The regulator says it made an actuarial loss of £33.4m relating to its DB scheme.

This compares to an actuarial loss of £26.4m in 2013/14, after its discount rate fell from 4.40 per cent to 3.40 per cent over the year.

The FCA says it is running a deficit of £24.9m, primarily caused by the timing delay between set-up costs of £30m incurred during the year for consumer credit activities and the recovery of these over a 10-year period.

FCA fines totalled £1.42bn in 2014/15, up from £432.1m in 2013/14.

Of this, £1.36bn was paid to the Treasury. A deduction of £42.6m is made by the regulator to cover enforcement costs, which it says will be returned to fee payers in the following year.

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Comments

There are 12 comments at the moment, we would love to hear your opinion too.

  1. So in which order do you present the £92k bonus and the %58m loss. I would have thought that the loss is more significant and yet followed your story of the bonus. Were not both figures derived from the same published accounts? “Good day to bury bad news” – oh both stories are bad news!

  2. I just want to lie down in a dark room. This can’t be happening. Bonuses and Losses. Seems the banks don’t have a cartel in this area.

  3. Trevor Harrington 2nd July 2015 at 3:48 pm

    Extortionate salary and benefits, to him and his co-directors.
    Also declared a loss of £48 million for this year.
    Increased fees by 10% with a 0% inflation rate.
    Bonus gallantly refused last year – only to be re-awarded this year.
    Nobody has the authority to bring them to heel, not even the Treasury Select Committee, who are casually ignored.
    Ladies and gentlemen – we have created a monster, or should I say Gordon Brown created a monster, and it is now truly and totally out of control.
    The only person I can think of who might be able to do something about this is David Cameron PM.
    Let us hope that one of his minions brings it to his attention.

  4. I don’t know what the biggest shock is; the fact that the FCA has made a loss, or their DB “PENSION” scheme lost £33 odd MILLION quid

    Now forgive me for wondering, they “DO” regulate the financial service sector don’t they ?

    With these figures, they look like a shower of sh1t, with their own house in disarray, one may come to to the conclusion, that they do/might, actually know a bit of what they regulate maybe I am wrong “ignorance IS bliss”

  5. And their ‘raison d’etre’ is to improve consumer confidence???????? Oh my sweet Lord 🙁

  6. Part of my GABRIEL fee calculation sheet for 2012/13 under periodic fees shows and I quote
    “Annual contribution towards the cost of funding the deficit of the FSA final salary scheme 3.5% (2011/12 3.9%)”
    Did I read this right? They are the country’s all powerful and knowledgeable seat of all things financial and the administrators of their own pension scheme “f***s-up” and runs a deficit. AND we the advisers are charged an excess levy to cover the shortfall????
    How can that be?
    So another bailout this year on the cards? Did I hear right.. FCA moving to Athens to be amongst similar minded folk

  7. I wonder how much the bonuses would have been if they’d made a surplus or broke even.

  8. “primarily caused by the timing delay between set-up costs of £30m incurred during the year for consumer credit activities ” -Forgive me, but didn’t this work quite well and much cheaper before the FCA got their hands on it.
    Agree with Graham S, sounds as if this lot should be in Greece as they have the same level of competence.
    Think I am going to tell my accountant I am going to take a whacking great bonus this year, then make a loss, oh! but then I won’t have sufficient capital resources, perhaps I can ask my clients for a donation each.

  9. I guess all the other comments are from currently regulated companies … Well I sold out 4 years ago because I was sick to the back teeth of Hector Sants and his merry men … What people really mean is thus is f***** rediculous

  10. Julian Stevens 3rd July 2015 at 4:57 pm

    The FCA would make a loss running a wine tasting event in a vineyard. The only thing that exceeds the levels of incredulity that this level of managerial and fiscal incompetence, not to mention personal avarice, provoke is the fact that nobody seems to be trying to get anything done about it.

    Oh, I forgot, APFA’s written to the Treasury asking it very nicely if it could try to do a bit more to encourage the FCA to take some notice of the Government’s agenda for better regulation. That ought to do it.

  11. The surprise is that I’m not surprised

  12. Bad regulators with bad regulations now with bad accounts and bad pensions. Bad situation. Surely they need to move to a DC scheme.

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