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FCA to cancel senior bonuses in wake of closed book review

The FCA is to cancel bonuses for several of its senior executives who will be heavily criticised in a review of its closed book blunder this week.

The FT reports FCA chief executive Martin Wheatley is one of five executives singled out for criticism in a report by Clifford Chance partner Simon Davis.

But it says it is not clear if Wheatley will lose his bonus. The FCA declined to comment.

The regulator appointed Davis to carry out the inquiry into its handling of a media briefing in March on its review of closed book policies, which caused insurers’ share prices to tumble in the six hours it took the FCA to release a clarification statement.

In June, it was reported that FCA senior executives had deferred their bonuses until the probe was complete.

Yesterday, the FCA announced a restructure of its authorisations and supervision divisions, which will see several senior figures step down.

FCA director of supervision Clive Adamson, director of communications Zitah McMillan and director of authorisations Victoria Raffe are leaving the regulator. The FCA says their departures are unconnected to the closed book review.

The FT reports that McMillan’s replacement will no longer sit on the executive committee or report directly to Wheatley.

Wheatley’s total pay for 2014/15 was £610,000, down from £667,000 in 2013/14. Last year, his bonus was worth £86,000.

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Comments

There are 16 comments at the moment, we would love to hear your opinion too.

  1. ‘Departures unconnected to the closed book review’?

    Utter tosh.

  2. The FCA should not pay bonuses to any one employed by them. The staff are well paid with perks that most IFA’s do not get. We must not forget it is our fees that are paying these bonuses not anything else

  3. I wish I was so handsomely rewarded for complete incompetence!

  4. First we have a treasury spokesman, reaffirming that immunity is sacrosanct for the regulator, then a major reshuffle which “may” mean the main culprits given a nice redundancy package, and now the loss or cancelation of bonuses for senior bosses !!

    All corners covered then, before the release of what seams, and reported so far, a very damning report from Clifford Chance !

    Make of that what you will, but from my mind…… well just say this; unprintable !

  5. Disgraceful that this pseudo privatised public service pays huge salaries and bonuses for such shoddy work.

  6. Why does a regulatory body that doesn’t do anything productive grant it’s senior staff a BONUS! What measure makes a BONUS due? Is it for services to the Paper production industry?

  7. Christian Patricot 9th December 2014 at 10:59 am

    Political commentators and parliamentary select committees can often be heard questionning why certain executives (BBC, utility compnaies etc) earn so much more than this country’s PM. £610K plus bonusses and presumably pension, anything else we do not know about and no doubt when he leaves he will get some “gong” and find himself in a mega lucrative job……in a bank or investment group! Oh what a wonderful world these people live in!

  8. Why are these unqualified people paid so much money ? I’m qualified, I help people and have all the liability of any advice I extoll.
    No Regulator or Regulations in the world can stop theft, they simply react after such acts have been perpetuated.
    Our Regulator is not even interested in prevention, if they were, the Banks would not continue to steal peoples money and the likes of Arch Crue would not have occurred.
    So why are these people on such salaries, is it because they live in London ? Its the only thing I can think of…….

  9. E L Wisty (an only twin) 9th December 2014 at 3:58 pm

    Delighted to hear that Adamson’s departure is “unconnected” to the closed book cock up. Does that, therefore, mean that disciplinary action will be taken against those responsible?

    Of course, my above comments are playfully disingenuous. However, sweeping incompetence of this magnitude under the carpet cannot be tolerated. If Wheatley cannot be trusted to run his organisation with integrity, then he should be sacked.

  10. When is his wife leaving the FCA too?

  11. So the FCA is claiming that Adamson’s departure is unconnected to the closed book review. If there’s a shred of truth to such a statement, it must surely be one helluva coincidence.

  12. I know that the FCA has to compete in the market, but declaring bonuses for work that is actually non profit (unless perchance it is based on fines) does seem somewhat perverse.

    If they are worth the money just pay it as salary. A bonus to me a standout contribution to the bottom line. On the other hand if they don’t perform as expected or required then the sanction is the sack.

    Please – let’s dispense with the bonus. It rather grates.

  13. E L Wisty (an only twin) 10th December 2014 at 10:10 am

    @ Harry Katz

    I agree. As with everything about the FCA, it’s about politics and self-benefit. By maintaining a bonus culture, they are able to disclose ‘low’ salaries, and then supplement them with ‘deserved’ bonuses.

    I would like to see a ‘do as you would be done by’ obligation imposed on the FCA; where, in circumstances such as this, an independent body will oversee the FCA’s handling of incompetence and ensure that the miscreants do not have the option of resigning and walking away with a big cheque.

  14. “Disclose low salaries” !!! What prey tell is low about £460,000 pa ?

  15. E L Wisty (an only twin) 10th December 2014 at 7:16 pm

    @ Sweep

    You are clearly a stranger to the concept of dripping irony and sarcasm.

  16. Yup missed the italics on that, apologies

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