FSA struggles to hire staff
STAFF costs at the UK Financial Services Authority (FSA) were £3.4m over budget last year, as the regulator struggled to recruit the “permanent specialist resources” needed.
Since last year the FSA has increased its headcount by almost 500 people, but uncertainty over its future seems to have hit its ability to attract permanent employees, with a higher proportion of contractors filling new roles.
Staff turnover at the FSA has also risen since 2009, doubling in the past year to more than 10 per cent as hiring in financial services picks up.
The regulator said the figure was “manageable” but that turnover “is now starting to return to the level we would expect as recruitment picks up across the sector”.
The increased focus on regulation since the crisis means City institutions are facing a shortage of people with the right skills to fill the glut of new risk and compliance roles.
“Regulation is such a hot topic that there’s a lot of demand for specialists,” said Norton Rose partner Jonathan Herbst. “It’s inevitably sucking people away from the FSA.”
The FSA’s annual report also detailed its directors’ pay, with chief executive Hector Sants topping the scale with a salary of £806,810, including bonuses of more than £300,000.