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FSA staff paid £20m in bonuses

The FSA paid its staff £19.7m in bonuses last month, a 40 per cent increase on last year’s payouts, according to figures obtained by the Liberal Democrats.

A Freedom of Information request revealed that £4m went to executives earning over £100,000 and one employee received a bonus of £90,000.

The average bonus paid to regulator executives was £19,100, while the average for other staff was £4,107.

Liberal Democrat shadow culture, media and sport secretary Don Foster says: “The size of some of these pay outs would be hard to justify at the best of times, but it looks especially bad in the current economic climate.

“Regulators must now follow the lead of those in the rest of the public sector who have promised to freeze executive pay.”

In February Money Marketing reported that the FSA had set aside £10m in its 2009/10 budget to increase staff pay, as well as 15 per cent of total staff salaries for potential bonuses.

An FSA spokesman said at the time that pay increases and bonuses would only be awarded “where they are warranted”.

The Association of Private Client Investment Managers and Stockbrokers says it is “outraged” at the 40 per cent bonus increase, despite regulatory failures in the private client sector.

Apcims chief executive David Bennett says: “The FSA have awarded themselves totally unjustified bonuses at a time when the industries they regulate have had to pull in their belts. In our own sector the FSA have increased fees by 27.6 per cent for certain activities compared to last year. This is at a time when our firms are being asked to pay £80m in compensation claims, something many firms would argue would not be necessary had they undertaken their regulatory duties properly.

“There is not a bottomless pit for private client investment management firms and until the FSA can prove they are able to regulate our sector effectively there should be a freeze on their bonuses.”

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Comments

There are 26 comments at the moment, we would love to hear your opinion too.

  1. Martin Newton 1st June 2009 at 1:33 pm

    FSA Bonuses
    Disgraceful…simply disgraceful!!

  2. Torild Bastien, Iver Mortgage Company 1st June 2009 at 1:38 pm

    Regulatory Failure
    I am absolutely stunned!

    I take it that the FSA are justifying the award of bonuses down to that the banking failure, and a contriburory factor to the slum in the economy, in the UK is caused by the intermediary sector and has got nothing to do with their performance as a regulator!

  3. FSA staff paid £20m in bonuses
    This is outrageous and totally unjustified!

    Given that most of the budget for the FSA comes from the fees paid by the industry – which the FSA has failed – and in which most IFA’s are struggling to survive, surely the right thing for the FSA to do would be to not pay the bonuses and waive the fees it plans to charge the IFA community this year.

  4. FSA Staff Bonuses
    To say anything esle other than a total and utter disgrace, a representation of everything that is wrong with our financial system and in particualr our regulator, would be to undervalue the total destruction of confidence and further deepening distrust many industry insiders and general public have of the FSA. These actions show another corporate entity acting and carrying out an unjustifiable reward structure that goes against everything decent. Indeed in times where the British economy is at it’s worst, Financial Services professionals and general public alike suffering financial hardship and job uncertainity is rife, the FSA seem ignorant to the fact that our very hard earned money is meant to benefit someone else’s holiday home, country mansion, or a nice new car. You are a disrgrace. PM please act now to stop this wasteful act! Our fees are not meant to cover luxuries for others!

  5. FSA Bonuses
    Has anyone worked out how much this is per member company? It is totally wrong that the cost of this should fall on IFA’s who are finding things tough.

  6. LOL
    It’s about time they woke up and smelt the coffee!

  7. typical
    outstanding!!!!

    this has to be a made up story as we all know this would never happen, where a governement approved body has tucked up its members, well, we are not really members we are just the people who fund them i am almost doubled up laughing as its the only thing you can do.. wonder if it will get the publicity the mps got, the banks go into finacial meltdown get bailed out by the tax payer, reposes houses create untold missery for certain people, AND GET THIS!!! The people who supervise all this get paid 20 million quid in bonuses, only in Britain can this happen, please sir can I have ajob at the fsa ( and not the food standards agency) i want a summer home

  8. FSA staff paid £20m in bonuses
    I really think it is time to consider another career. Perhaps a job where one can produce an unsatisfactory performance and still receive a bonus. If only my conscious would let me work for the FSA.

  9. FSA Staff Bonuses
    This is disgusting, is this their Golden goodbye before the General Election and their redundancy. Did Sir Fred sanction these? Do they know that IFA’s have seen a reduction in business & income along with their clients. Are they in the real world!!!!!

  10. FSA Bonuses
    Absolutely disgraceful. This really is a reward for failure

  11. Self serving at the FSA.
    The FSA is actually worse than the House of Commons.

    MP’s are elected on the strength of their spin doctors, they are not elected on the basis of their competence to do the job. With disastrous results.

    Officials of the FSA are supposed to be professionals required, presumably, to go through a selection process to see if they are ‘Competent’?

    The B o E regulated for more than 130 yrs. without bust banks. The FSA has only been at it to 10 and has had 4 fail.

    For ANYONE at the FSA to get a bonus is TOTALLY OUT OF ORDER. In fact a high number of SENIOR people should be SACKED for failing to do their jobs, which means that they should loose all benefits. No Golden Handshake and No Pension.

  12. FSA Joke
    Clearly, intermediaries have 2 choices, stand for Parliament or join the FSA.

  13. FSA staff paid £20m in bonuses
    Are you kidding me?
    Could you enlighten me with the basis on which FSA staff are paid bonuses? As I see it they are employed to do a job for which they are paid a salary. Why are any of them paid bonuses?
    This is totally outrageous!

  14. FSA Bonus
    Not surprising I suupose.
    Like the government they have total contempt for the industry they are meant to serve, have absolutely no idea of even the basics of how the financial world works & are so detached from reality that they are able to convince themselves that they are doing a good job & are worth the money.

  15. Douglas Carroll 1st June 2009 at 3:24 pm

    Allies of the Banks
    Being one part of the tripartite regulator of the banking sector, the FSA watched over the financial devastation caused by it’s own inability to understand exactly what it was supposed to be regulating. This alone must surely be worth these bonuses.

    In addition, further bonuses must surely be awarded for continuing to undermine the independent sector, especially when regulations favour the banks and confuse the public.

  16. FSA staff paid £20m in bonuses
    An absolute disgrace

  17. FSA Bonus
    I dont have any problems with bonuses in principle, they are a necessary reward for good work. What I do have a problem with is that this organisation presided over the following:
    Independent Insurance, Equitable Life, Northern Rock, Bradford and Bingley, virtually all of the banking system and yet they expect a reward to enable them to retain staff!!! I forgot to mention a final salary pension scheme.What is one of those I hear you say?
    This is as outrageous as MPs expenses claims.

  18. Here we go again
    Absolutely disgusting- another payment for failure. Perhaps if they ran there own business instead of being able to dictate their income they may see the light! I surpose they are now in the same boat as the _ankers ( never was much good at spelling ).

  19. J Alan Campbell 1st June 2009 at 4:42 pm

    FSA Bonus Payments
    Why are employees of a regulatory body receiving bonus payments, are these for a job well done? If so what was it? In the long run I suppose this is why they increased our registration fees!

  20. Richard Russell 1st June 2009 at 4:54 pm

    FSA Bonuses
    The very idea that anyone employed by the FSA, (who are, afterall, paid by brokers and lenders), should receive any bonus, just beggars belief! Surely, even Gordan Brown must admit what a horrendous gaffe was made with the very inception of yet another Quango, run by inexperienced busybodies. If regulation by the BoE needed tightening up, then fine, give them the powers and the budget. // Will the Tories bite the bullet and do away with another example of loony Labour policies?

  21. Culture of Failure – still alive and kicking
    20 April 1653:-

    “It is high time for me to put an end to your sitting in this place, which you have dishonoured by your contempt of all virtue, and defiled by your practice of every vice; ye are a fractious crew, and enemies to all good government; ye are a pack of mercenary wretches, and would like Esau sell your country for a mess of pottage, and like Judas betray your God for a few pieces of money. Is there a single virtue now remaining amongst you? Is there one vice you do not possess? Ye have no more religion than my horse; gold is your God; which of you have not barter’d your conscience for bribes? Is there a man amongst you that has the least care for the good of the Commonwealth? Ye sordid prostitutes have you not defil’d this sacred place, and turn’d the Lord’s temple into a den of thieves, by your immoral principles and wicked practices? Ye are grown intolerably odious to the whole nation; you were deputed here by the people to get grievances redress’d, are yourselves gone!

    With thanks to Harry Katz for digging this quote out.

  22. What A F£££££G JOKE
    What the hell have they done to deserve bonuses, nothing. But what’s new with the FSA they have killed our industry, all the regulations all the so called new ideas, Treating Customers Fairly, thats the biggest joke ever they dont know the meaning, they using our FEES to line their pockets, what disgusting approach,and they telling us as IFAs that we have to reduce our commissions or no commissions at all and charge the customers, I just wonder if we like them, make it compulsary that our clients pay us bonus if we providing no service and wrong advice like they have for so many years, FSA let us get on with our good work that we have done for over 150 years before you were formed…….badly FORMED. Refund all the fees you charged us which our clients paid dearly.

  23. FSA Bonus
    How dare they! No doubt it’s ‘justifed’ by saying it’s the only way to keep good staff. But do they have any? These people are sick, and our government are a toothless bunch of hypocrites who have neither any idea nor any concern beyond winning elections. Sadly they don’t even know how to do that! Is there anybody out there that has any idea whatever, that this kind of payout will bring little short of physical violence! It certainly dosn’t make for good FSA? business relationships.

  24. FSA Bonus Payments
    The FSA bonus payments are paid on the basis of revenue inward, predominantly fines levied. On this basis the FSA have done very well indeed. Hence the payments. In every other respect the FSA has failed miserably

  25. Stephen Guess 3rd June 2009 at 4:43 am

    FSA bonuses
    This only goes to highlight that the FSA is an organisation run by people who have lost the plot completely. Their list of failures over recent years has cost the country billions and if they knew what they were doing they should have prevented the banks getting involved in the toxic loans well before it got to the stage it did. Now to cap it all the fact that they have awarded themselves any bonuses let alone a 40% increase is an insult to the country.

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