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Firms launch record crackdown on staff conduct in 2012

FSA Letters 480

Financial services firms launched a record crackdown over staff misconduct in 2012 as FSA figures show 1,400 authorised staff were sacked, suspended or resigned while under investigation last year.

City AM reports the number of qualified withdrawals from the FSA register rocketed 76 per cent compared to 2012 showing a more tougher stance over wrongdoing.

The number of clean withdrawals, where workers leave through redundancy or job move, rose six per cent to nearly 35,500.

The figures were published by law firm Pinsent Masons after submitting a Freedom of Information request for the figures since 2008.

Pinsent Masons financial services partner Helen Farr says: “The FSA has increasingly shown that it is cracking down on financial crime and market abuse.

“Financial services firms are operating under increased scrutiny and as a result employers are imposing industry rules more strictly.”

The FSA made a record £312m worth of fines in 2012 as it clamped down on market abuses such as Libor rigging and irregular trades.


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There are 5 comments at the moment, we would love to hear your opinion too.

  1. ‘Conduct’. How many of these were employees being ‘managed’ out by the banks under the ‘discipiinary process’ because they missed a sales target. It happened to me, many others I know, and several resigned with these pending rather than have them on their employment records. The high street banks have a ‘sick’ attitude towards their staff.

  2. Given the fact that there’s no requirement to notify the FSA of the comings and goings of ordinary support staff, it would be interesting to know just how many of the 35,500 “workers” who’ve left through redundancy or job move (presumably to work in a different industry because they’re so fed up with this one) were authorised individuals, i.e. advisers and principals of regulated firms. That is the key datum on which to base an assessment of the effects of the FSA’s RDR and all its other regulatory policies.

    There’s only so much beating that any group of people will take before more and more of them decide that it just isn’t worth carrying on, so they look for other types of business in which to make a living.

  3. How many of these were FSA staff?

  4. Whether you are a supporter of the new regulations a raising of standards was always going to result in the number of individuals choosing to leave the profession.

    In saying this I also believe that the cultures within certain organisations have resulted in people choosing to leave the industry and I would like to see the FSA take more notice of the cultures of firms particularly those organisations that have high pressure targets these include banks but also include some independent firms. The fact is that high pressure sales cultures can and do cause miss-selling and until the FSA takes more notice of these cultures we will be doomed to repeat some of the mistakes of the past. I also believe that these types of cultures have a direct effect on mental health of some of the individuals working in our industry e.g. increased stress levels and indeed nervous breakdowns. I have myself worked within banks and building societies and although I have never suffered with workplace stress I have witnessed some despicable action from managers to some of my colleagues and it could be argued that this is work-based bullying.

    Regulation should not only look at the way business is carried out with the consumer should also look at the cultures of organisations as often the root causes of most miss-selling scandals lays with the culture of an organisation.

  5. I am aware of non regulated staff offered the opportunity to leave by internal investigations rather than involve Police in obvious fraud, but regulated staff disciplined out over sales targets. Guess not hitting a sales target doesn’t make the papers. More constructive dismissal cases are needed in the public eye so they know what actually happens. Looks like banks apply their own morality.

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