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Topics: Mervyn King| FSA| Bank of England
Mervyn King wants a new breed of regulators focused on public service and not huge banking-style pay packages when responsibility for financial regulation transfers from the FSA to the Bank of England in 2012.
The Governor of the Bank of England said it was time to move away from the model where people take two or three years out to work as a regulator before returning to City of London jobs, the Telegraph reports.
"What we really want is a cadre of people who see their professional motivation in life as being regulators working in public service," he told the Treasury Committee.
"We want to build up now in the area of regulation is not a team of what I would call bankers, but a team of people who clearly understand banking, but who have professional commitment to a lifetime of public service as a regulator."
He conceded it would be challenging to bring in highly-paid existing FSA staff alongside lower paid Bank staff.
However, over the longer term "we will have to work towards the harmonisation of the terms and conditions of the Prudential Regulation Authority and the rest of the Bank", he said.
People who transferred from the FSA would remain on their existing terms and conditions, King added.
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| Comment | FSA staff must be public servants not bankers-King |
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At last some sense
At last some sense. For too long the FSA has focused on fines and huge bonuses for making those fines, when it should have been focused on guiding the industry in the right direction. I have also been saying for years that regulation should be handed over to the Bank of England who are both independent of Govt/Treasury influence, and also knowledable about their industry. The next step should be to scrap the FSA staff on their huge bonuses and higher than bank staff wages, and replace with the knowledable staff of the Proffessional Bodies who know what they are talking about and are also independent of Govt/Treasury influence. The alternative - which could well happen, is a Pan- European Regulator from Brussells. If the Germans, French and Belguims ever got their act together and started to agree on financial policy, this could well happen. Then we will all have to start this magic roundabout again - fun isn't it? I know the put your head in the sand brigade will scoff at this warning, but anyone who was at the AIFA Dinner in London a few weeks ago, will know that a European Regulator is firmly on the agenda - now that would be scarry! Hey ho....!
Posted by: Tony Silver
Small detail missing
If the regulator is going to be run by civil servants, then the costs and fees should be funded by the tax payer!
Posted by: paolo standerwick
Ex IFAs
Regulators of IFA businesses should have some suitably qualified staff who have experience of running their own successful IFA businesses.
Posted by: Ken Durkin
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Public Servants not Bankers
Congratulations to Mervyn ! At long last the pennies are beginning to drop. I have been banging on about this for years. They want to stop recruiting bank employees or ex bank employs and start employing proper consumer interest crusaders. Two of the new CPMA commissioners are ex bank guys and one is Clare Spottiswood of Ofgen and Aviva reattribution fame. When did any of these three ever do much to protect consumers ? Mervyn though seems to be unaware that many civilservant also get paid bonuses these days. Pay people a salary and fire or demote them if they don't perform. That is how it is for the majority of working people.
Posted by: John Smyth