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TSC hits out at £4m Money Advice Service redundancy payouts

Caroline Rookes
Caroline Rookes: At the Treasury select committee

The Treasury select committee has hit out at the £4m redundancy costs paid out to Money Advice Service staff last year.

MAS, which is the subject of a TSC sub-committee inquiry, has cut the number of full-time equivalent permanent staff from 150 in November 2011 to 66 in March and employs an additional 27 staff on an interim basis.

In its 2011/12 budget, the MAS revealed £4m redundancy costs, dropping to £250,000 for 2012/13.

Conservative MP Jesse Norman said: “Do you think there is something slightly odd about a service that is two years old having redundancy costs of £4m last year?”

The MAS was set up in April 2011 and all employees came from the Consumer Financial Education Body which was part of the FSA.

Redundancy payouts to MAS staff have been based on FSA redundancy policy, which awards staff who have been with the regulator for over six months and less than two years a sum equivalent to 13 weeks of basic salary.

MAS chief executive Caroline Rookes said: “The redundancy programme is complete. Most of the redundancies either took place or were agreed in the previous year.

“It was the nature of the service. I was not there but it was set up by taking an arm of the FSA. MAS has been through an enormous transformation programme to create the organisation we need and to deliver service and leadership to the sector.”

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Comments

There are 13 comments at the moment, we would love to hear your opinion too.

  1. Read the last paragraph and weep.

  2. “It was the nature of the service. I was not there but it was set up by taking an arm of the FSA. MAS has been through an enormous transformation programme to create the organisation we need and to deliver service and leadership to the sector.”

    Sorry but I dont need leadership from an unqualified quango that isnt authorised to provide advice but claims to whilst wasting money on crap adverts.

  3. Couldn’t run a p*ss up in a brewery comes to mind. A sad indictment of the gravy train culture we live in. 13 weeks salary after just 6 months’ service – just unbelivable.

    This Quasi-governmental Titanic needs to be brought into harbour and dismantled.

    Sadly, what could have been a valuable service has yet again been turned into an ineffective money pit, funded by the industry that works tirlessly to earn an honest buck and put food on its families tables. Beyond belief, I really don’t know how much longer I can put up with the Stasi bureacrats trying to destroy this industry and waste money.

    This was a once great industry, yes it had it flaws, but I don’t think I have the energy to put up with the constant tinkering from the uninformed Regulators/Government.

  4. who are these people and where do they find them??!! Where do I apply?!

    What is she qualified in and what gives her the right to provide ‘leadership’ to our industry.

    I guess they are just another part of the British establishment. Well connected and well heeled but with not one iota of a clue what the industry needs; and with no passion.

    Very very very sad and endemic in the Brisitsh Governemtal Quango system. I really do despair, waht a waste of money.

  5. “MAS has been through an enormous transformation programme”
    So have advisers – All at their own cost.

  6. Is it too late now? 26th June 2013 at 2:02 pm

    Britain is the equivalent of a once glorious and vital beast, now ravaged inside by the energy-draining parasites, who have spent years growing inside mostly unnoticed until their impact is too big to miss.
    We have collectively let this happen and let these people shift the culture so that the monstrous scope of their presence is just accepted as inevitable and so I guess we have only ourselves to blame, but that doesnt stop us resenting them.
    We can only pray that enough people see the light to restore the balance before we are beyond all hope

  7. So ulitmately the same old rheteric, acceptance it was a disgrace but no one ever is to blame or be held accountable.
    What is thepoint in these TSC meetings??

  8. The managers of the CQC were found to know nothing amout clinical practice, just stuffed shirts that spout management speak and acronyms. And here we have a lady who knows nothing about finance running the MAS.

    Why is it only in the puiblic sector that people who know nothing are now the only ones able to thrive, whilst presiding over disaster after disafter. You mark my words, the MAS is going to get caught out giving formal investment advice, and that it is wrong…and whoosh…the Rookes woman will be early retired off with a £1m+ pension pot. It’s a well rehearsed career path.

    PS: Why do the FCA have such a high staff turnover? 9 months pay for 6 months work looks like a bargain to me. What high calibre genius agreed to offer those employment contract terms? Presumably the same high calibre genius who runs the franchising of the railways, etc, etc

  9. Its all been said before and will be said again, the point is Government, MP’s and the FSA/FCA don’t give a sh1t really, its not paid for by the tax paying public or out of there own budgets.

    They will continue to waste our money till we have all gone bust or it runs our !!!

  10. Matt Worthington 26th June 2013 at 2:28 pm

    @ Anonymous | 26 Jun 2013 1:53 pm
    “MAS has been through an enormous transformation programme”
    So have advisers – All at their own cost.”

    An excellent point. Generous redundancy payouts for those MAS ‘advisers’ who lasted over 6 months before being restructured.

    No help or funding whatsoever for real financial advisers, who have been in the industry for decades, and also fell victim to the ‘enormous transformation programme’.

  11. Becoming a headcase IFA 26th June 2013 at 4:00 pm

    @ David G 12:31 pm

    I hear what you are saying David. Every day I am thinking about packing it in but just keep tryng to soldier on.

    It used to be enjoyable but I hate this job now.

  12. Yes, being an adviser was once enjoyable and now it’s horrid and futile.

    However, once I retire, I will have to fork out £550 every time some smeghead tries an opportunistic claim at the FOS.

    Uneliche

  13. The answer to the question: Do you think there is something slightly odd about a service that is two years old having redundancy costs of £4m last year? appears to be that it’s in line with FSA policy, namely that it’s all OPM, so what the hell.

    What a screw up.

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