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FSA redundancy bill hit £1.4m in last three years

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The Financial Services Authority paid over £1.4m in redundancy payments and dismissed 11 employees over poor performance in the three years before it was scrapped.

The FSA was replaced by the Financial Conduct Authority and the Prudential Regulation Authority in April.

A freedom of information request has revealed in the three years leading up to the changeover, the FSA made 30 staff members redundant paying out a total of £1,476,898 in redundancy payouts, or an average of around £49,000 per employee.

In 2012/13 the regulator made 14 people redundant with 16 people made redundant in the previous two years. The FCA has not provided the exact number for 2011/12 and 2010/11 to avoid individual former staff members being identified.

The FCA did not provide a breakdown of individual payments made by the FSA, but instead provided details on the total amounts paid out to different levels of staff.

Managers made redundant by the regulator received a total of £256,935 while directors were paid a total of £255,000.

Heads of departments got a total of £181,235, technical specialists were paid £36,839 and administrators and associates received £749,889.

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. I’m sorry but this is what you get from an organisation who has no responsibility for their budget and benefit from an open cheque book from the industry it regulates !!!

    Average pay-out of just under 50k per person, words fail me or they are just un-printable ? bit of both really but more of the latter.

  2. That’s your’s and my money folks. Wages way above what should be for the previous head guy and still way too much for the present guy who makes himself look sillier every time he opens his mouth. How can the average redundancy payout be £49,000. What are they paying these people in the first place?
    This set up can’t be allowed to go on like this can it?

  3. An Average of £49000 per employee.
    You would need to work a minimum of 30 years for that kind of package in the real world.
    Where can I find an application form for a job in Wonderland?

  4. Statutory redundancy pay, capped at 20 years is £13500. This lot are milking us dry.

  5. Brigadier Hewson Bundlebrask 14th August 2013 at 1:47 pm

    The FCA employees handbook, which is almost certain to be a copy of the old FSA employees handbook stipulates the following

    Where an employee is made redundant and the FCA has been unable to offer alternative
    employment, a compensatory payment (inclusive of any statutory redundancy and FCA
    enhanced payments) calculated according to the formula below, will normally be granted
    (subject to you signing a compromise agreement):

    It further states that redundancy payments for employees with more than six but less than 24 months service is 13 weeks basic salary.

    If more than 24 months then 13 weeks plus 2 weeks pay for every additional year of two weeks for every complete year of service in excess of two years
    0.5 week for every complete year of service over age 40 and under age
    45.
    1 week for every complete year of service over age 45 and under age 50.
    1.5 weeks for every complete year of service over age 50.service

    one week’s salary is the equivalent of 1/52nd basic annual salary. A week’s pay is that
    which the employee is entitled to under his or her terms of the contract at the date of
    calculation. The ‘calculation date’ is the date on which the FCA gives the employee the
    minimum notice to which he or she is legally entitled.
    •?all calculations are subject to a maximum payment of the greater of one year’s salary or
    £100,000
    •?payments are inclusive of any statutory redundancy that may be payable;
    •?the calculation of number of weeks’ salary for more than 2 years’ service will be pro-rated
    to reflect the actual period of service to the nearest whole month

  6. You will be relieved to know that the FSA/FCA is an equal opportunity employer.

    As one wag related about boxing promoter Don King, “This means that whether you are white, black or any colour in between he will steal the first 101 cents out of every dollar you have”

  7. For an organisation that claims to be understaffed I find the figure somewhat strange.
    Are the FSA really saying that they were laying off highly paid staff at the same time as they were taking on highly paid staff?
    I would suggest that an external audit of the veracity of these “redundancies” be required by the people in charge. Whoops, the people in charge have just been made “redundant”.

  8. presumabley non of these experts were re employed by the FCA after being let go?

  9. If a director got £250k and 5 employees got £10k each the average would be £50k, so stop reacting to the headline. You cant apply averages when they can be so massively skewed by senior staff.

  10. Defending them as usual matthew.

  11. I believe the way to making money in the UK is to become a Chelsea Manager (and get sacked, quick route to become a millionaire) or turn up for the FSA or similar organisations ( I refrain from calling it work) and wait for redundancy payments plus pensions and a new position in the body that replaces it.

    Where is the TCF in that !!!

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