View more on these topics

FCA bosses defend £800k gardening leave payouts


Financial Conduct Authority chief executive Martin Wheatley and FCA chairman John Griffith-Jones have defended the terms under which former FSA senior management were paid a total of over £800,000 after they left the regulator.

At the FSA final annual public meeting in London last week, one attendee challenged the FCA board over Sants’ six months paid gardening leave, saying it left a “bad taste in the mouth”.

Speaking at a press conference after the meeting, Wheatley said: “It is important to remember by virtue of the job we do, we get access to very detailed and sensitive information within the reach of financial institutions.

“I do not think the industry would feel comfortable if anybody could move from that senior position immediately to a role within the industry. As much as anything it is to protect the industry that we cannot take current knowledge of very sensitive issues straight into a competitor firm.”

Griffith-Jones said: “It is appropriate to have a gardening leave provision in people’s contracts generally, I think that applies to the FCA just as it applies to other sectors.”

The FSA final report for 2012/13, published earlier this month, showed former chief executive Sir Hector Sants was paid £300,178 for six months gardening leave after he left the regulator in June 2012.

Former chairman Lord Adair Turner was paid £252,000 on leaving the regulator in April while former director of enforcement Margaret Cole was paid £250,897 after leaving the FSA in March 2012.

In total Sants was paid £530,441 in 2012/13 while Turner was paid £785,153.

Highclere Financial Services partner Alan Lakey says: “The defence is these generous payouts are contractual entitlements, but you have to question whether they should be in the contracts in the first place.”



FCA drops legal case against healthcare IT firm directors

Four former directors of healthcare IT firm iSOFT have been cleared of misleading investors after the FCA confirmed it would not be pursuing a second retrial against them. In January 2010, the regulator launched criminal proceedings against Patrick Cryne, Stephen Graham, Timothy Whiston and John Whelan for alleged conspiracy to make misleading statements between October 2003 and […]

Q2 delivers highest ever UK dividend payouts

British firms paid out a bumper £25bn in dividends in the three months to the end of June, the largest ever quarterly payment by UK firms to investors. During the second quarter, UK plc rewarded shareholders with £25.3bn in gross dividends, a rise of £1.8bn, or 7.6 per cent from the same period a year […]

PwC says well regulated sector could create 250,000-plus jobs by 2020

A well regulated financial services sector could see over 250,000 new jobs created by 2020 but current regulatory reform is restricting financial advice and product availability, according to analysis by PricewaterhouseCoopers. In a report published earlier this week, PwC suggested a financial services sector which was well regulated would also add about 2-3 per cent […]

Globe - thumbnail

Considerations for overseas workers in Germany

With Germany’s strong economic growth leading the eurozone’s recovery, many UK businesses are keen to be part of the success story: recent data shows that there are currently more than 280,000* employees working for a UK-controlled company in the country.


News and expert analysis straight to your inbox

Sign up


    Leave a comment