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Standard Life to cut up to 500 jobs, RBS to cut 3,500 jobs, Number of high-earning FSA staff trebles
What interesting times we live in. Regulation in many ways is a self-perpetuating industry. Essential in so many ways yet almost unaccountable for the costs involved and impact of its actions upon those it regulates.
The headline above is a composite of three announcements made last week in Money Marketing.
Standard Life CEO David Nish says: "As we transform Standard Life to deliver its growth ambitions, there is a need to both invest for future growth and actively manage our costs to be competitive.
In stark contrast to this, an FOI request by the FT confirmed that the FSA had 241 staff paid more than £100,000 in March 2010, compared to 81 in March 2006. An FSA spokeswoman was quoted as saying that the regulator needs to attract and retain high-quality people "so needs to offer attractive packages, especially when competing with the private sector for specialist talent".
RBS announcing that it is about to cut 3,500 jobs nationwide said "Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support. We continue to make efficiencies across our business and adjust our plans in line with the divestments we have been required to make by the EU."
The Unite union, in response to the RBS cuts said "We continue to see a financial services sector which thinks the skills and expertise of it's staff are a disposable asset with scant regard for the high level of service these very same staff provide to their customers."
Now here is the rub. The financial services industry has shed thousands of jobs in recent years and along with it many highly talented, experienced professionals. Many of these probably despair of ever finding challenging work at a high level, or indeed any level of remuneration again.
For a regulator that now has a sell by date, is it appropriate that this pattern of fiscal behavior continues. The FSA and indeed any new financial services regulator will have a wealth of experienced talent available, only too keen to be back in work, as a consequence of it actions over the last decade.
Yet the beat goes on, la de da de de, la de da de da.
Article last updated: Sep 2, 2010
Derek Bradley, CEO
Sarah Paul, Marketing Director
James Bradley, Head of e-Relationships
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