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MPs ask why wasn’t anyone sacked as FSA staff get full £14m bonuses

FSA staff received their full bonuses this year despite the regulator admitting to a catalogue of mistakes in its supervision of Northern Rock.

At a Treasury select committee meeting on Tuesday, FSA chief executive Hector Sants revealed that FSA staff received bonuses totalling £13.9m for the 2007/08 year, 12.3 per cent of the total salary bill.

Sants told MPs that FSA executives had decided not to cut bonuses despite the regulator admitting its pivotal role in the Northern Rock debacle.

He said: “We paid the same percentage of salaries as bonuses to employees of the FSA for 2007/08 as we did the previous year. This decision was made by the board on the recommendation of the executives.”

Select committee sub-chairman Michael Fallon criticised FSA chairman Sir Callum McCarthy for failing to officially sack any of the FSA’s 2,600 staff in the wake of the problems at Northern Rock.

He said: “Don’t you think it would have been an acknowledgement of the extent to which you recognise your failures in Northern Rock and the confidence you want to give everybody in claiming new powers if at least one person had been dismissed?”

Select committee member and Labour MP for South Derbyshire Mark Todd said: “I am mildly surprised that I have not had correspondence from little IFAs saying, ‘well, they’re all over us like a rash and look at what happens when they’re looking at much higher-risk institutions.’ I think I have only had one of those.”


Comments (2)

Labour MP for South Derbyshire Mark Todd said: “I am mildly surprised that I have not had correspondence from little IFAs saying, ‘well, they’re all over us like a rash and look at what happens when they’re looking at much higher-risk institutions.’ I think I have only had one of those.”

http://www.parliament.uk/directories/hciolists/alms.cfm takes you directly to every member of parliament and in the vast majority of cases it provides a link to their e-mail .

Maybe it is time for little IFAs and big IFAs alike to let their local MP know how they feel

Joe Quinn


It is my understanding that it is a combination of our levy and the nation’s
tax that pays FSA salaries and bonuses, how do we therefore go about asking
for justification of how bonuses are based?

How do we also go about asking them to justify the time spent monitoring our
activities as IFA’s compared to Banks and Insurer’s and how much benefit is
derived by the public.

Gordon Symes


Recommended

Full circle

Five or six years go, I attended an Aifa dinner where the main speaker was Sir Howard Davies, then chairman of the FSA.

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