A leading head hunting consultancy says the FSA should increase salaries to attract staff capable of carrying out a more interventionist regulatory approach.
The FSA is set to split into two new regulators in 2013 and its chief executive Hector Sants says the new approach for both the Prudential Regulation Authority and the Financial Conduct Authority will include more direct interventions.
According to the Financial Times, Hedley May says the regulator needs to increase its industry funded budget by a third from the £500.5m it has this year to ensure the quality of staff.
Hedley May founding partner Nick Hedley says: “The good £250,000 person can move for £500,000 and the good £500,000 person can wove to the private sector for £200,000. You need to close that gap. There are plenty of industry people whom we talk to who say: ‘I thought about going to the regulator but I did not want to take the pay cut’.”
At recent conferences announcing the new approach of the regulators, Sants has said the right staff will be key to their success, accepting that finding them could be a challenge.
Announcing the approach of the PRA in May, he said: “It is however, 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.”