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‘FSA must raise wages by 50% to get quality staff’

Headhunting consultancy Hedley May says the FSA must increase its annual spend on wages by 50 per cent to attract staff capable of carrying out a more interventionist regulatory approach.

In 2013, the Government will split the FSA into the Prudential Regulation Authority and the Financial Conduct Authority and both regulators are being set up to take a more interventionist approach.

Hedley May says the FSA will need to increase its wage budget from its 2010/11 spend of £329m to £490m to attract and retain quality staff.

The regulator’s budget for 2010/11 was £450m, with 73 per cent allocated to staff costs. Hedley May founding partner Nick Hedley says: “There are plenty of people in the industry we talk to who say they have thought about going to the regulator but they did not want to take the pay cut.”
In June, the FSA announced that annual staff turnover more than doubled to 10.4 per cent in 2010/11 from 4.9 per cent in 2009/10.

In May, FSA chief executive Hector Sants said attracting the right staff will be key to the success of the new regulators and acknowledged that finding them could be a challenge.

He said: “It is not an impossible task. Individuals can be found who recognise the rewarding nature of the role in the wider sense and are attracted to the concept of public service.”


Lloyds to launch £3.3bn securitisation

Lloyds Banking Group is to launch an estimated £3.3bn securitisation deal backed by a pool of prime residential mortgages. The loans were originated by Cheltenham & Gloucester before the transfer of its banking business to Lloyds TSB Bank in January 2010. Since then, Lloyds TSB has originated the loans. The transaction, which was issued through […]

Gold shares outshine the real thing

According to Warren Buffett, all the gold in the world would form a 67ft cube worth $7trn. You can look at it, stand on top of it and declare yourself king, he says, but gold does not create value and therefore should not be a permanent fixture in a portfolio. Since the late 1920s, gold […]

Ex-Virgin and Egg chiefs to run letting agency

Shepherd Direct has set up a letting agency, Direct Lettings, to be run by former Virgin Money UK managing director Rob Clifford and former Egg chief executive Paul Gratton. Shepherd Direct, which owns MoneyQuest and Direct Valuations, has appointed ex-Connells corporate services director Paul Staley as managing director. Clifford, who is now managing director of […]


MM Leader: FSA should cut the dogma and heed MPs

In calling for a 12-month delay to the retail distribution review and softening of the cliff-edge deadline, the Treasury select committee has listened carefully to the valid concerns of many IFAs and their MPs. But instead of taking time to consider the balanced TSC report, the FSA swiftly dismissed its key recommendations, showing a pretty […]

Mark Page: “A good time to be a European fund manager”

With European markets picking up in early 2015, Mark Page, Artemis European Opportunities Fund manager, discusses the ‘macro’ drivers and whether the improvements are sustainable. Largely driven by economic stimulus by the European Central Bank, European stockmarkets have performed strongly so far in 2015. Mark discusses the relative merits and sustainability of ECB policy with […]


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