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FSA staff turnover doubles in a year

Annual staff turnover at the FSA has more than doubled over the past year, from 4.9 per cent in 2009/10 to 10.4 per cent in 2010/11.

The regulator has published its staff turnover figures as part of its annual report for 2010/11, which measures the progress made against its business plan published last March, and covers the year from April 1, 2010 to March 31, 2011.

The FSA says it has increased staff levels in line with its more intrusive approach to supervision, and as a result staff turnover has varied.

The FSA says: “Our turnover levels are manageable; while our turnover went down considerably during the financial crisis it is now starting to return to the level we would expect as recruitment picks up across the sector.”

The regulator paid out £24.8m in annual staff incentive rewards in 2010/11, the equivalent of 13.8 per cent of the FSA’s total salary bill. In 2009/10 the FSA paid out £21.9m in annual incentive rewards, reflecting a lower number of staff.

FSA chief executive Hector Sants was the highest paid director over the last year, earning £806,810 compared to £773,067 last year.

Sants’ remuneration includes a £500,000 basic salary, £115,000 in performance-related bonuses, £131,810 for car expenses and other flexible benefits, and £60,000 payment in lieu of a pension contribution.

FSA chairman Lord Adair Turner accepted a £10,000 increase in his salary to £426,000, after foregoing an increase to £435,000 in April 2009.

The report also reveals that the amount raised in fines during the year has gone up by almost a third, from £33.5m in 2009/10 to £91.2m during 2010/11. The FSA says this will be used to reduce the amounts payable by relevant fee blocks in future.

Enforcement costs are down from £68.4m to £57.9m, including the costs of external accountants and lawyers, which have gone up from £7.3m to £8.8m.

Overall the FSA spent £450.8m during the year, compared to its budgeted spend of £458m. It raised £464.2m in fees from levy payers, compared to £435.5m raised for the previous year.


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

  1. So Mr Sants believes he can regulate every minutiae of the industry with a workforce that’s running away at speed.

    We need to reform this monster down to a size and scope that allows the industry to develop along commercial lines rather than as some bizarre corner of East Germany

  2. Why are these imbeciles paid such an obscene amount ?

  3. hector is proving that he couldnt run a p*** in a brewery, what a shambles and our industry is funding these buffoons.

  4. These salaries/bonuses are shocking. For an industry that is already over-regulated and losing good advisers who are disillusioned with the dictatorship of the FSA, it is time that some sense prevailed. Why should bonuses be paid ??

  5. Good God, words fail me …….

  6. Gary, I can understand your point of view but having a regulator that is small and with limited scope will only lead to further fiascoes and harm the industry. I personally believe that we need a regulator that does ask questions and has real teeth, and is more intrusive. I cannot believe that Northern Rock for example only had one inspection 18 months before it collapsed, this is not regulation, this is rubberstamping.

    For those working in the industry, if you don’t like it you can always find another trade, I for one will be supporting the world of regulation and we need to stop moaning about it and understand that it is there to protect us ALL.

    The only thing I really disagree with the regulator over is the lack of Grandpa rights under RDR regulations but that is unique to IFA’s and the FSA regulates the whole of financial services.

  7. How the hell can you accumulate £131,000 in car expenses?
    What car is he driving or should it be driven around in and how many miles covered
    Bloody joke just taking the p–s

  8. This Hector chap earns far more than any broker I’ve ever met. His job is to regulate us but could he ever do our job? In fact, has he ever done our job? Well he can’t make a good effort with his own job so what’s the logic behind his astronomical salary?? People at the top (hooray henry’s) generally get their jobs through the old Boy Network leaving little need for real skills and qualifications. That smells like the kind of corruption you get from states run by tin-pot directors, sorry I mean Dictators. My apologies to Colonel Gadaffi.

  9. Garry you are absolutely right, I for one did not sign up to a Communist state, where over paid unqualified people are unaccountable for their actions and destroy all that is good about trusted advisors. RDR should be dead and buried along with the FOS and FSCS. The Ministry of Justice should take half of the money it costs to keep the F pack gravy train rolling and set up a simple fast track court, manned by qualified experts where disputes over (miss-selling) would be heard under the laws of the Land, with an appeals process gave IFA’s their human rights back.

  10. In response to Peter Herd I would suggest that no-one is really against regulation. It is just that the cretins running the regualtor are incompetent and don’t know how to regulate successfully.
    Instead of trying to understand and work with the industry they are content to destroy it.
    If they were successful, we wouldn’t have had the fiascos and harm we’ve suffered under the imbeciles at the FSA. In time they will have regulated the industry away.

  11. @Peter Heard, I hear what you say however, the problem is the only people the FSA are Protecting are the banks and themselves! How many bankers have been charged with anything for the collapse of the sytem and how many FSA staff have been sacked because it happend on their watch!

  12. They are taking redundancy and taking a golden hello from the new regulator does not take a lot to figure that one out!!!!!!

  13. The FSA could tripple its staff numbers and yet it would still not stop another Northern Rock or Equitable Life. Good god it didn’t even pick up that the banks were going bust. The whole FSA fiasco is just a job creation scheme.

  14. HOW MUCH….? Those who support the world of regulation can see now how much it is costing us. Are they REALLY worth even a tenth of this? Look at the £115k performance related bonus for Sants the Pants….just think how much lolly that would have been slopped into his silver spoon if he had actually performed even marginally well.
    We are being dumped on from a great height, and some of us still think it’s good. What can you say.

  15. These people are only human beings no doubt with bills to pay and mouths to feed. Whilst I would not wish to side with them, they are probably only jumping ship as their jobs are not secure like many othes in the public sector.

    In these and other columns we constantly tend to forget many of them are probably fairly conscientious people doing a job.

    It is the ones who make the policy that we should be aiming at not the grunt in the trenches doing his job to the best of his ability.

  16. It is a market economy we live in you get paid what you are worth, those bleating are just jealous little men who are not good enough to attain a position paying such money. Plus all the moaning about Northern Rock et al its hardly like the UK is only place that has encountered problems, Lehmans went in the US, Fanny Mae and Freddie Mac were bailed.

    I will suspect I will receive the usual drivel of a response from the uneducated hoards who seem to stalk this website.

  17. @Bob Donaldson | 13 Jun 2011 3:01 pm 13th June 2011 at 3:14 pm


    ob you say these people are only human beings and of course you are right and I have no doubt that as a reflection of society most are decent hard working people as indeed are those they regulate. Human beings of course have human rights but these rights are not extended to those they regulate. The FSMA 2000 has stolen those rights and by virtue of this theft those staff who work with the FSA are complicit in handling these stolen goods.

  18. @Peter Herd

    Your argument sounds superficially sensible but the reality is that it was the large regulator that allowed the fiascoes of banks failingl, PPI misselling, Arch and Keydata on its watch.

    Give me a small regulator that discharges its responsibilities with foresight than a large one that does it with hindsight any day.

  19. The fact is if you want to attract good people into the job of being a regulator, you have to pay a market rate, the problem I have is that I want regulator to have a balanced approach and attract staff from all sectors, including the IFA community.

    We can all talk about structures and whether a strong regulator is a good thing or bad thing, but the one thing that we can all agree on is that the past structure, was simply not fit for purpose.

    I for one never want to go through another financial crisis like this one without some real lessons being learnt and a problem with any system is that you have people with vested interests on all sides. What we need to do is put those vested interests to one side and try and come up with constructive comments to help our industry come up with a system that is both fair to the consumer and also protects the industry, sometimes from itself.

    Finally, bleating about change has never been a productive course of action particularly if no suggestion of a better way is been put forward.

  20. Yet more wonderous revelations. RDR is a ludicrous creation benefiting banks who cause the problems and providers who will be able to increase bonuses to staff and dividends to shareholders while practitioners go out of business, the masses wont be catered for and the welfare of millions is ignored. Friendly Societies were formed for the good of the people which benefited all, this RDR wil do the opposite. Please send me details of any-one who wishes to pay fees. Jim Brown

  21. Picking up on Hectors car and other flexible exes.
    George Osbourn raised the car allowance to 45p per mile in the 2011 budget. Even if we take only half the £131k that suggests he claims for 146,455 BUSINESS miles per year. Not really credible.
    Perhaps the National Audit Office needs to do some checks.

  22. Julian Stevens 13th June 2011 at 5:51 pm

    No signs of austerity within Canary Towers then? No signs of anything approaching fiscal responsibility or conscience either. No apologies for past failings. No undertakings to try to do better without spending any more. Just give us more, more, MORE and we’ll (maybe) do better.

    But then what can you expect from a totally unaccountable government body ( funded by coercion of the private sector? Pipe down and pay up or pack up and piss off. That’s our professional lot in life.

  23. How come Hector had a bonus? If his pay was performance related, he should have handed some back for failing.

  24. Turnover at FSA – surely this is staff selling themseles to other firms who need some insight ito how to comply with the very woolly Principles. Would you want to head up the FSA? Must be a thankless task they do need to have mor contat with the real client world tho!

  25. So give or take a couple of quid then Hectors Car and his flexible benefits costs as much to run as the Prime Minister…

    These payments and generally the monies being spent within Financial Services (i.e NEST/RDR etc….) is just becoming farcical…

    Come 2013 who really wants to be part of all of this…. it’s all rather running out of control…

    Seems I am just a very well paid old Hector….

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