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FSA freezes pay for majority of staff

The FSA has told staff that the vast majority of employees will not get a pay rise this year.

In an email to all staff FSA chief executive Hector Sants said the regulator had not put aside funds for pay increases this year.

He said the FSA’s bonus pot would be the same as last year at 15 per cent of the total salary pot.

The email said: “There will be no pay rise for the vast majority of staff.”

An FSA spokeswoman says the decision takes into account “the general economic climate and pay trends in the marketplace”.

She adds: “Some performance related bonuses may still be paid in relation to performance last year.”

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Comments

There are 24 comments at the moment, we would love to hear your opinion too.

  1. So they will still take the £33 million bonus again this year. BANKERS IN DISGISE!

  2. …..and what reasons are they going to give for having a bonus at the end of the year???

  3. No need for a pay rise when you’ve a 15% bonus! It will be interesting to see how many people do get a pay rise – and who these indispensible people are.

  4. Why are staff getting a bonus when the FSA has failed to regulate financial services properly in particular Banks & Building Societies. It seems that we have a culture in the UK of rewarding failure and that goes for senior bank staff as well. Personally I think these people should get the same pay rise as doctors and nurses and other government employees rather than enjoy a 15% bonus, reality check think.

  5. As many in the financial industry are having pay freezes, pay cuts or redundancy, then this is a sensible move.

  6. michael white CEO email mortgages 13th January 2010 at 10:07 am

    This is simply dreadful news for the hardworking staff at the FSA…no payrise and just a miserly 15% bonus.

    I realise many ordinary people have had to endure salaries cut and a good number have just simply lost their jobs. But of course it is unreasonable to compare the rest of the financial services sector with the regulator and the unparalleled expertise it maintains, which as a rule should indeed be rewarded.

    At least a bonus at 8 times the rate of inflation will soften the blow and hopefully allow these people to carry on doing a fantastic job without too much financial stress….they clearly deserve it.

  7. Well done Hector, some socially useful action.

    However, knowing what I now know I would have gone one step further.

  8. “Look you horrible banks and moaning IFAs, we can take the pain as well”.

    You don’t fool us.

  9. ….and for the minority?????…..who are they…????? ….why the disparity….?????…..and the BIG question – who exactly makes the decision on the payround?

  10. Neil F Liversidge 13th January 2010 at 10:15 am

    I feel genuinely sorry for the rank and file enmployees. Official inflation may be near zero but real-world inflation for most people is a lot higher and a lot will find it hard to make ends meet. I take issue with a lot the FSA does in policy terms but pretty much all the individuals I have dealt with in the course of normal business have been thoroughly helpful and decent people. A pay freeze is no problem when you’re earning well into six figures like the senior management of the FSA, but for those ordinary employees doing the work it’s no joke. It’s the old story: When the bosses say “We’ve all got to take a step down the ladder” those at the top maybe get their feet wet, but those at the bottom drown.

  11. It’s the very first bit of good news I have heard about the FSA for years. About time that they got their heads round reality for a change. And why is it no pay rise for “the vast majority” of staff? Why not the entire staff?

  12. A mortgage planner 13th January 2010 at 10:21 am

    I should bloody think not !

  13. I should think so. As the FSA accepted massive errors as a regulator, I am wondering who receives the bonus of 15% salary pot. Not surprising most are from a banking background with that mentality.
    As the FSA preach transparancy, I would like payscales published against time spent, given most directors have many hats to wear. I think all regulators income should be public knowledge. With no choice but to pay levies we should at least know what we are paying for and to whome.

  14. Freeze !!!! should be reduced.

  15. paolo standerwick 13th January 2010 at 10:30 am

    Pay Freeze, is that all? We need clawback of money for bad workmanship and past mistakes/failures which are far too many to list.

    That’s called accountability Hector!

    Just like the abuse and sh*t IFAs need to put up with.

  16. Robin Hood could not have put it better, Robbing the Extremely Rich and Dishonest nee
    Criminally Fraudulent IFA to fund bonuses and perks to the wonderful Cinderelas of Regulation.

    If the Regulatory System was honest, the last five years bonus and salary increases by grade would be published and compared with average National Income.

    The fact that pay is held this year does not mean it is not in some misc account waiting for the first opportunity to pay it out.

    The FSA should practice what it preaches and be honest and open in its dealings with members

  17. I am a former Park Row adviser. One of the 85 still waiting for authorisation with Personal Touch 2 months after Park Row closed.

    My heart bleads for these poor people that I have helped to pay.

    I had to tell my son yesterday that we were going to sell his car to ensure that I can pay my staff, very distressing for me because the car was financed by a bequest from my late parents.

    I don’t suppose any of the poor staff at the FSA are likely to face this.

    am helping to pay.

  18. No pay rise for the vast marjority! So that measn that some in the FSA are getting a pay rise? Perhaps someone at Money Marketing will contact Hector Sants and ask exactly WHO is going to qualify for a pay rise and WHY?

  19. Good to see the IFA community not slagging off the FSA on this. It is a move in the right direction.

    However the FSA keeps expanding it’s brief and taking on staff at the highest levels, whilst claiming that they have difficulty with recruitment.

    What I would question is why there have been no senior staff made to ‘walk the plank’ over the the regulatory failures. So there must be a lot of people at the regulator who only continue to have jobs because, being a systemic failure, no one was ‘at fault’. The fact that nobody at the regulator seemed up to the job doesn’t seem to worry anyone. Keep your job, keep your bonus and ‘Carry on Regulating’. Brian Rix and his Whitehall farces would have had a field day.

    I also suspect it is senior staff who are most likely to get a rise which is appalling.

    By the way with some bonuses are sure to be over £25k who is going to pay the additional tax? After all most of these people would have called themselves ‘bankers’ up until Alistair Darling announced the special levy! Most have come from banking and will expect to go back there.

  20. So the minions will get nothing but, I suspect, all the bigwigs – the people responsible for the awful regulatory failings – will get big fat salary increases.

    And, exactly who, has earned a bonus. An organization that has proved itself to be unfit for purpose awarding other people’s money in bonuses. And, in any case, why should a civil servant (in all but name), with clearly defined role, be paid a bonus simply for doing his job.

    Bonuses are for people who sell stuff or, perhaps, do lot’s of unpaid overtime. I’ll bet most people in the FSA are out the door on the dot of 4:30

  21. Anonymous | 14 Jan 2010 5:35 pm – I can only speak for my department, but staff here do work considerable hours of unpaid overtime each week. In busy periods, 14 hour days are common. The reason for the bonus is pretty simple. Everyone has a set of objectives each year, if you meet those targets you might get a small (ie a few percent) bonus. Miss them by a bit, no bouns. Miss them by a lot, no job. Exceed them and you bouns might be as high as 10 – 15%. The purpose is to provide an incentive to exceed your targets, just as it was in every private and public sector firm I’ve worked in for the last 20 years.

  22. Anon. 15/1/10. 10:50
    Sounds as if you work for the regulator and I respond on that assumption.

    Bonuses should be instituted for the ‘Sales’ side of business only or to reward staff across the board for a particularly profitable year.

    In a ‘Not For Profit’ outfit such as yours there is therefore no justifiable reason for a bonus culture.

    Bureaucrats/administrators, whether working in central/local Govt. ‘Quangos’ or, as in this case a statutory body, are paid to do a job of work. If overtime is so necessary then it should be paid for and the manager who allows it questioned why his staff have not completed their work within normal hours. Introducing targets for bureaucrats seems to have replaced proper ‘management’, as in the manager knowing the job and keeping abreast of what is happening in his department. In any case who sets the targets? In the case of the FSA its all ‘in house’, what a way to carry on!

    Bonuses should in any case only be paid when the whole business is profitable. In the case of the regulator a comparable situation would be when you have shall we say ‘delivered’ on your ‘statutory’ reason for existence, as assessed/overseen by an independent body. As I see it you make your own ‘targets’ but even when Hector says ‘sorry the systems were not up to the job’, we FAILED in our statutory duty and the taxpayer has been landed with a bill for ££££ billions you still got your bonuses and expect the same again this year!

    Incredible!! Mind blowing!! You must all be bankers or should that be ‘bonkers’!

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  24. Anonymous 1.36.

    Commission hungry salesmen usually get commission and eventually found out.

    A well motivated salesmen with a great product gets commission, may be a bonus , and is key to a successful economy.

    As an IFA i do not see myself in either of these roles but i can differentiate.

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