Finding a new boss for the FSA is going to be a Pain-ful task

It was announced today that another Financial Services Authority MD has bitten the dust.

Jon Pain’s departure after just two years at the regulator has left the internal short list for Hector Sants successor very, err, short. In fact, its now pretty much non-existent.

Managing director of supervision Pain and managing director of risk Sally Dewar were both tipped for the top spot when Sants announced he was stepping down. However, within a month of each other they announced they wouldn’t be clinging on to their jobs at Canary Wharf.

So what could be the cause of the exodus? I can think of three reasons, maybe you can come up with a better explanation.

1. They were both told that, despite the press reports, they weren’t going to become chief executive.

This would infer that the FSA is going to look externally for a candidate and considering the failures of the regulator to date, it’s probably a wise move.

The name that cropped up in February was Paul Tucker, deputy governor of the Bank of England. His name is still in the ring thanks to his position on the FSA board – perhaps him and Hector could do a direct swap.

2. Pain and Dewar are hoping to follow Hector over to the Bank to pick up even better jobs. Frankly, the future of the staff is as yet undecided but the Bank’s remit is clear and it will have more power over what’s left of the FSA (which will be known as the Consumer Protection & Markets Authority).

Why not go for a bit of a land-grab with a new role at the Bank?

3. They’re moving away from regulation completely in a savvy PR move. Think about it – you’ve been tipped to take over as chief executive of the FSA, that’s pretty good for your profile.