View more on these topics

FSA hit by staff exodus

The number of staff who have left the FSA over the past year has almost doubled on the previous year, ahead of the move to the new regulatory structure.

A Freedom of Information request submitted by The Independent has revealed that over the past 12 months 352 employees quit the regulator compared to 181 the year before.

Between April and September last year 187 people left the FSA, more than the number that left over the entire previous year.

The FSA says the number of staff leaving is in line with levels seen before the financial crisis to reflect a pick up in financial services recruitment.

In 2008/09 206 regulator staff quit, compared to 326 employees who left in 2006/07.

FSA human resources director Kathleen Reeves says: “Staff turnover levels fell during the crisis but are now starting to return to the level you would expect as recruitment picks up in the financial services sector.”

The regulator has been hit by a spate of high profile departures over recent months.

Former head of risk Sally Dewar left the regulator in January and will join JP Morgan Chase’s London office in June to work within its risk division.

Former managing director of supervision Jon Pain also left the FSA in January, and will join KPMG as a partner in July as part of a division that collects information on financial services regulatory developments.

Last month also saw the departure of insurance sector director Ken Hogg, who left the regulator to join reinsurer RGA as chief actuary and financial officer for the UK.

It comes ahead of the planned transition to the new regulatory structure, which will see the FSA replaced by two new bodies, the Prudential Regulation Authority and the Financial Conduct Authority.

The restructure is expected to be completed by the end of 2012 or early 2013.


News and expert analysis straight to your inbox

Sign up


There are 30 comments at the moment, we would love to hear your opinion too.

  1. It should have been a lot more.

  2. The Party`s over, it`s time to call it a day. Can`t remember the next line but I think it`s something like, we`ve found a proper job now where rules will restrict us for what we may do.

  3. Would those remaining like to follow suit?

  4. We like to mock FSA employees but those I have dealt with appear to be decent and intelligent people. I suspect that they are becoming increasingly uncomfortable at the regime they are being asked to enforce.

    How can you have any job satisfaction when you know that you are working within a fundamentally corrupt system. You can’t so you get out.

  5. FSA staff are normal decent people 26th April 2011 at 1:29 pm

    I live in the Managerial Age, in a world of “Admin.” The greatest evil is not now done in those sordid “dens of crime” that Dickens loved to paint. It is not done even in concentration camps and labour camps. In those we see its final result. But it is conceived and ordered (moved, seconded, carried, and minuted) in clean, carpeted, warmed and well-lighted offices, by quiet men with white collars and cut fingernails and smooth-shaven cheeks who do not need to raise their voices. Hence, naturally enough, my symbol for Hell is something like the bureaucracy of a police state or the office of a thoroughly nasty business concern.
    C. S. Lewis
    English essayist & juvenile novelist (1898 – 1963)

    Of course the FSA staff are normal decent people so too are the 30% of IFA’s binned as a result of RDR.

  6. But many FSA staff will land on their feet in the industries they once regulated. On the other hand 30% of RDR culled IFA’s, with an average age of 54 are destined never to work again!

  7. What do you call 352 FSA staff tied together at the bottom of the ocean…..


  8. Simon Mansell | 26 Apr 2011 1:34 pm

    Unfortunately its about supply and demand, poorly qualified ex-ifas are not really in demand however ex-regularity staff are hugely sought after by a host of organisations.

    And to be fair they are probably more professional and more qualified to ply their trade elsewhere.

    That’s just the way things work.

  9. Just a thought but if any of them are looking for a new job can I suggest they join NPI because that firm needs someone to give their clients some service as they currently employ no one who seems to want to do so.

  10. sterto alias fsa stooge
    no one is forcing fsa staff to RE qualify or quit.
    Furthermore, if they did WANT to gain a few more qualifications this would all be paid for on that neverending expense sheet which is funded bythe IFA’s you so clearly despise.

  11. Incompetent Regulators Awards Team 26th April 2011 at 5:03 pm

    What about the poorly qualfied FOS adjudicators and ombudsmen passing jusgements or more highly qualified IFAs? Making humongous mistakes which others pay for. How sad when they think they are actually doing something they think is good. Total administrative bullsh*t comes to mind.

  12. what percentage does 187 people/5 months represent of total work force? sounds alot to me.Any company losing 5%-10% of staff is either overmanned to begin with or there is a serious loss of morale.

    Either way we all know the people at the top of the FSA are lacking in foresight and the inability to generate a feel good environment where we all can prosper it would now seem in their own staff!

  13. I for one think we should be happy.

    If they are leaving for pastures new this would suggest that things are picking up in our industry.

  14. I’ll bet the recruitment agencies are rubbing their hands in gleeful anticipation, what with the FSA planning to increase staff numbers to 3,700. Say 500 vacancies with an average yearly remuneration package of £50,000 times 20% ~ that’s £5m in fees. Unless, of course, the FSA are advertising direct, though I doubt it. Never mind, though, it’s all other peoples’ money.

  15. To: Sterto | 26 Apr 2011 2:57 pm

    On the subject of supply and demand Adam Smith took the view an economy runs automatically: But the process can be perverted by vested interests, who use government power to distort this free market system for their own benefit …The proposal of any new law or regulation of commerce which comes from this order, ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it.”

    Adam Smith Ibid.,Book1,chXI,p.267,para.10

    In a word regulators and vested interests distort markets!

  16. Good. They can al go and crawl back under the rocks where they belong.

  17. Anonymous | 27 Apr 2011 10:23 am

    How sad you feel that why about people you don’t know and who don’t make the rules just apply them.

    Do you feel the same about the police I wonder

  18. Sean @1.28
    living under FSA regulation for so long gives one a sense of loathing for any type of authority.The automatic assumption is that they are all rotten and corrupt.
    Even if you were not responsible for unfair rules, would you be happy to apply them, citing ” I was only obeying orders” as the excuse?

  19. To sean 1.28, I have to agree with anon 2.11
    Obeying an illegal order when ti comes to human rights (or crimes against humanity in the military) make you an equal participent in that crime.
    I have a recording of my debate with Amanda Bowe (RDR) and several other IFAs on a tele conference, trying to get her to condemn or condone the removal of the longstop from the handbook under FSMA 2000 and refusal to re-instate when the MISTAKE (as parliament never discussed it’s removal).
    As far as I am concerned ALL employees of the FSA who are involved in any actions which do not respect the right to a longstop are morally corrupt.
    Does anyone care to disagree?
    If so please explain why, as I (unlike teh FSA) am always willing to listen and consider a well reasoned argument.

  20. Anonymous | 27 Apr 2011 2:11 pm

    For a well paid job and to feed my family yes.

    Problem is most of these guys are just employees of the regulator with no real connection to the real world of the IFA – not a lover of them but feel sorry for them too because they take the grief that we feel for Sants and his cronies.

  21. Sean@2.35
    The German army were employees of Hitler & the state…. no excuse, they each had a conscience and the ability to see right from wrong.
    Phil Castle is correct… there are orders and there are Illegal orders, which no self respecting soldier is obliged to follow.

  22. to anon 3.01 To show that an illegal order is an illgeal order and I am NOT anti German, at the end of world war 2, Antony Eden instructed the “re-partiation” of White Russian Cossacks (men women and children) who had fought on the German side against the Red Army to the USSR despite teh fact the geneva convetion meant they should have been returned to their starting point BEFORE the war. as they had left Russia and NOT the USSR before the outbreak of world war two (many 20 years earlier), it was abreach of the geneva convention. There were those that knew it was a breach and those that didn’t. Some of the Scottish troops at teh bottom who didn’t even know it was an illegal order but knew it was immoral practically mutined…. The “repatriation” still went ahead.
    Those staff at the FSA who are leaving could be leaving for any reason, but I hope if they are leaving on moral grounds they speak up now they have left even if they were not willing to do so at the time.

  23. Lloathing for the FSA 27th April 2011 at 3:36 pm

    Such is the loathing for the FSA that no compassion is shown for these wage slaves who lose their jobs. Consider Mr & Mrs FSA the predicted 10,000 advisers who will lose their livelihoods and not a tear is shed or a word said in defence of their loyal service to their clients over a lifetime. On the 16 Sep 2006 Callum McCarthy, Chairman, FSA makes an after dinner speech at Gleneagles and as a result in 2012 10,000 financial advisers face termination!

  24. Anonymous | 27 Apr 2011 3:01 pm

    You are a disgrace to even blacken the name of people you know nothing about, who will be from all types of background, with mention of Nazi Germany.

    It is nothing like Nazi Germany you moron the death of 6 million people compared to idiots like you upset over how a regulated regulators you – it is so insignificant.

    I hope you suffer greatly with the RDR and under the FCA, in fact I hope you are out the industry very soon.

  25. Sean @ 3.39
    I am afraid there are similarities with Nazi Germany.
    The beginning of oppression was to single out a certain group of people and allow them to suffer treatment which differed to that of all other citizens.
    The next step was to prevent them from doing business and earning a living.
    Before long this type of discrimination became acceptable. It was not my intention to compare my lot with the 6 million who lost their lives and agree with you that compared with that my situation is insignificant.
    I simply pointed out that to blindly follow orders is no excuse.
    I wish you well in the future and hope you prosper under rdr.
    There will be those however who will be forced out due to the fact they are governed by an unelected, dictatorial quango that has decided that they are not good enough. .

  26. I knew some people were boarding on the paranoia about the FSA but some of these comments are a sick joke comparing the plight of the IFA to that of Nazi Germany – I agree with Sean on this.

  27. Oh now that is a surprise sterto

  28. Sean Kilmartin | 27 Apr 2011 3:39 pm

    World War 2 was fought against the Nazis in order to protect our basic freedoms. FSMA 2000 breaches our human rights and the FSA is the instrument of those breaches. The Nazi comparison was used only as a warning that each generation must fight to miantain the freedoms that others have given their lives for.

    You may recall that the Law Lords ruled against New Labours backing for a law that suspended the Human Rights Act and imprisoned foreign
    terrorist suspects without charge or trial in Belmarsh prison.

    Do you think that under the Financial Services and Markets Act 2000 (FSMA) the defendant (the financial adviser) should be afforded the same right of appeal as afforded terrorist suspects?

    Condemnation from Lord Hoffman included the comment that “the real threat to the life of the nation, in the sense of a people living in
    accordance with its traditional laws and political values, comes not from terrorism but from laws such as these”.

    Lord Scott of Foscote opined that the situation was “the stuff of nightmares”, which he
    associated with “Soviet Russia in the Stalinist era”.

    Of course Lord Hoffman could have just as easily been referring to the Financial Services and Markets Act 2000, or even the Finance Act or any
    other recent Act. Every single piece of legislation introduced since 1997 (and there have been hundreds) erodes basic, and not so basic,

  29. Sean Kilmartin – At least you have had the deceny to use your real name. As Simon Mansell said, we are looking at a slippery slope and pointing at it now. Some of us when it has no significant implications for us now. The annology with Nazi Germany is actually a good one in my opinion as many in Gt Britian fell for Hitler’s charms as well, just as they did in Germany until it was too late to do anything.
    I read Albert Speer’s Biography who as you will know was Hitler’s named successor. A very intelligent and clever man, who from what I can see, simply kept his mouth shut with regard the distastful things and plowed on regardless.

    The F pack knows it is wrong to ignore the 15 year longstop. It is immoral and to date they do not even want to discuss the fact that solutions already exist and ongoing advice means that as far as proffessional negligence is concerned the 15 year clock doesn’t really start ticking all the time the adviser/client relationship continues. The moment it ceases, logically the clock starts ticking.

  30. I was going to say that if Anon wanted to have an argument with Sean Kilmarrtin over the appropriateness of using Nazi Germany as an example of creeping, insiduos rules that it would only be fair for him to identify himself until I checked the FSA register as below.

    From the FSA Register

    Search conditions
    Surname: Kilmartin
    Forenames: Sean
    Individual reference number:
    Match level: Starts with
    Currently Approved:
    Search again
    Individual reference number Name Status

    No matches found.

    As a result I think I’ll remain another anon. 🙂

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm