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FSA exodus as resignations double

The Financial Services Authority saw staff resignations rise by 128 per cent in the second quarter as the Government announced plans to break up the regulator.

A total of 121 staff quit from the start of April to the end of July, compared to just 53 who left in the same period last year, according to data from Reynolds Porter Chamberlain obtained from a freedom of information request.

This represented a 95 per cent rise on the 62 resignations seen in the first quarter of this year.

The total number of staff to quit in the first half of the year was 183 – more than the total number of resignations seen in 2009.

A total of 3,600 people still work at the FSA and the regulator said that while 121 staff resigned in the second quarter 328 people accepted jobs during the same period.

Jonathan Davies, partner at RPC, says: “The FSA’s staff have been leaving in droves because of uncertainty over the regulator’s future. This kind of exodus cannot have a positive impact on the FSA’s ability to function.”

Chancellor George Osborne announced plans to give many of the FSA’s powers to the Bank of England in his first Mansion House speech on June 16.

The rest will be given to a new Consumer Protection and Markets Agency.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Rats leaving a sinking ship ??

  2. So, if I’ve done my maths correctly, the FSA’s staff actually grew by about 6% in the second quarter – that’s annualised growth in the numbers of staff employed of about 26%.

    Perhaps the FSA is looking to absorb the cuts being made in the rest of the Government bureaucracy!?

  3. One wonders what the recruitment agency fees were for 328 new staff? Say 20% (+ VAT) of £50,000 p.a. x 328 = £3,854,000.

    Then again, maybe the word’s about that the FSA is such a great place to work that they’re inundated with quality people writing in direct and don’t have to use agencies.

    One wonders also what they’re telling interviewees about future prospects? Either an automatic transfer to the CPMA or, failing that, a nice big redundancy pay off.

  4. Well it’s a great way to avoid accountability. Just get up and go before the manure hits the fan.

  5. What is the latest figure of regulated advisers stil operating in the Uk ? 20,000 ? I have no idea what it is, but 3600 staff at the FSA seams rediculous. At 20000 that is a 1 in 6 ratio, even at 40000 that is 1 in 12. What are all these people doing ? I think I will apply. If you can’t beet them join them.

  6. Leaving due to uncertainty about their future?

    Now they know what it’s like to be an IFA – we do not know whether RDR will come in or not despite providers having taken and imposed what benefits them from it already!!!

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