Almost a third of staff in the FSA’s enforcement division are to leave this year through redundancy or being moved to another department.
A number of new appointments from top City law firms and accountants are due to be announced shortly, leading to a 20 per cent net reduction in numbers although the budget will remain the same.
The FSA says the enforcement division’s new team and structure will be in place by the end of November. The restructuring is part of the regulator’s move to a more principle-based approach which it says requires highly skilled staff to interpret the principles.
The FSA announced in its 2007-08 budget that £50m will be allocated over the next 10 years to train staff about regulating in a principle-based regime. The staff cuts began in January and will be completed in November.
An FSA spokeswoman says: “This is part of the FSA’s ongoing work to have the right quality staff to face the challenges of principle-based regulation and deliver benefits for the industry and consumers.”