Other Citywire websites
Stay connected:

View the article online at http://citywire.co.uk/new-model-adviser/article/a690549

Hector Sants received £300k after FSA departure

by Jun Merrett on Jul 10, 2013 at 11:47

Hector Sants received £300k after FSA departure

Former Financial Services Authority (FSA) chief executive Hector Sants received £300,000 after leaving the regulator as part of his contract, the annual report into the final year of the FSA has revealed.

Sants (pictured), who left the FSA in June last year, received £300,178 as part of his contractual entitlement, the regulator said. 'On leaving the FSA he continued to be employed by the FSA for a further six months during which he received his full pay and benefits and was unable to take paid employment in another organisation,' it said.

Former FSA chairman Adair Turner meanwhile received a £252,000 payment. He had been employed on a fixed-term contract ending on 19 September 2013 but left on 31 March. Former managing director Margaret Cole meanwhile received a £250,000 payment.

FCA chief executive Martin Wheatley received an £86,000 bonus on top on his £429,999 basic salary and £112,386 in other emoluments and benefits during 2012/13.

Total director pay across the FSA reached £2.4 million over 2012/13, up from £2 million the previous year.


47 comments so far. Why not have your say?

JonnieB666

Jul 10, 2013 at 12:00

Well so much for no reward for failure and treating customers fairly. Clearly those at the regulator are exempt from the rules which they make up and enforce on the rest of the industry.

report this

David McCabe 1

Jul 10, 2013 at 12:07

Obscene money. Not worth it at all - the price of failure is high, sadly to those of us that have to pay it & not the perpetrators.

I wonder what happened to proportionate remuneration.....

report this

Craig Payne

Jul 10, 2013 at 12:10

To me these figures just show how out of touch with reality and what a complete lack of financial accountability there is within our regulator.

report this

PHILIP EDWARD

Jul 10, 2013 at 12:12

Please provide the contact details for the FCA HR Department. I am interested in a new career. Excellent pay and benefits, no responsibility!

Sounds good to me.

report this

M.White - Boutique

Jul 10, 2013 at 12:14

Are we really surprised....."Do as I say, not what I do"

report this

Robert Johnsey

Jul 10, 2013 at 12:14

Why do we tolerate and pay for this nonsense?

Can we have an 'Adviser Spring'?

report this

James Clancy

Jul 10, 2013 at 12:15

Yes they all have contract of employment and are entiled to this money.

Would it have been better if they had rejected these payments.

report this

Knowledgable insider

Jul 10, 2013 at 12:15

Lay the blame where it is richly deserved ....This Government for not sticking to what it promised pre election...less red tape. Cameron is an amateur and is spineless

report this

Dhan Sharma

Jul 10, 2013 at 12:17

Nice work if you can get it!

report this

Stephen Jackson

Jul 10, 2013 at 12:18

and I just received an invite from the FCA to pay to attend a seminar they are presenting on understanding financial crime. I cannot think of any organisation better placed to deliver such a presentation...

report this

Graeme Urwin

Jul 10, 2013 at 12:25

oink oink .............

report this

David Salmon

Jul 10, 2013 at 12:28

'On leaving the FSA he continued to be employed by the FSA for a further six months during which he received his full pay and benefits and was unable to take paid employment in another organisation,' it said.

Why did he need to? He was laughing all the way to the beach!!

report this

Ian Merricks

Jul 10, 2013 at 12:30

Oligarch Contracts - Unbelievable!

report this

David McCabe 1

Jul 10, 2013 at 12:30

@Knowledgable Insider - red tape & this Govt has nothing to do with the system it inherited & the incompetence & greed of the hierarchy latterly at the FSA. I remember watching Sants & Nicoll smirking & sneering at a Parliamentary committee (was it the TSC?) a year or two back - basically looking like the cats that had got the cream & knowing that nobody, including Parliament, could do anything about it.

report this

Martin Benn

Jul 10, 2013 at 12:32

They are all feathering their own nest with of our money?

report this

Julian Stevens

Jul 10, 2013 at 12:33

The gravy train for the fortunate few rumbles on as unstoppably and as unaccountably as ever....... Hey, it's all just OPM, so WTF?

report this

Eddie Mac

Jul 10, 2013 at 12:34

Where is his integrity!! Oh thats right he clearly never had any.

report this

Des Pondent

Jul 10, 2013 at 12:37

Shameful from the shameless! These people couldn't give a flying f*** about everyone else so long as they're lining their pockets at the expense of the British investor. After all, it's they who pay! Jobs for the boys I'm afraid and our government just turn a blind eye. Martin Wheatley - £500k+ per annum. Is that real value for money? It's about time 'their' fees were shown as a separate cost to the investor. If they're so virtuous, let them stand up and be counted in the same way as everyone else under their beloved RDR! Rant over - it's cider weather!

report this

Stephen Jackson

Jul 10, 2013 at 12:38

see you on the barricades..

report this

Jonathan Kirby

Jul 10, 2013 at 12:38

Never mind, perhaps they can get it back when Barclays are next fined?

The only snag is that if they are to gaol reckless bankers, the taxpayer will end up footing his board and lodge.

report this

Hickky

Jul 10, 2013 at 12:42

Jul,have you got a bet on with Alex to see whose article will raise our blood pressure higher? I guess the winner will be the one with most posts at close of play. This one does not count as BP is too high on a daily basis.

report this

David IFA

Jul 10, 2013 at 12:47

So as per usual the Losers win !

report this

Julian Stevens

Jul 10, 2013 at 12:56

The next Barclays fine will be snaffled by the Central Exhequer, Jonathan. We'll derive no benefit from it whatsoever.

report this

Ian Jenkins

Jul 10, 2013 at 12:57

I have suddenly realised that "Hector Sants" is and anagram of ROT CHASTENS. What a shame I missed the opportunity to use that over the last 5 years---hey ho on to the next one?

report this

David Hedge

Jul 10, 2013 at 12:57

Reward for failure. Sums up the Civil Service and Politicians.

report this

Julian D

Jul 10, 2013 at 13:09

And there was I wondering why my FCA levey had doubled this year, silly me...

report this

Terence O'Halloran

Jul 10, 2013 at 13:13

What more can I say? If only the industry had backed me in 1994. If only.

report this

Bob Donaldson

Jul 10, 2013 at 13:14

I am thinking of taking six months gardening leave prior to taking up a highly paid new job elsewhere. Please would you all pass the hat round to pay for me doing this.

Oh by the way having been a miserable financial advisor for thirty years stiching up all my clients by selling high commission paying plans I think I also deserve a knighthood. Anyone got a sword!

report this

Julian Stevens

Jul 10, 2013 at 13:22

Talking of anagrams, A Load Downhill is pretty good for Linda Woodhall. And I'm sure we all hope that Sheila Nicoll is now In Social Hell.

report this

Julian Stevens

Jul 10, 2013 at 13:26

Cryin' won't help you, prayin' won't do you no good,

Now, cryin' won't help you, prayin' won't do you no good,

When the levies break, mama, you got to move......

With apologies to Led Zeppelin.

report this

John Whipple

Jul 10, 2013 at 13:26

Why not check out where some of your money is going?

http://www.charitycommission.gov.uk/find-charities/

1078555 - THE SANTS CHARITABLE TRUST

report this

Usually found sitting on the fence

Jul 10, 2013 at 13:52

I want to write about it being your own fault, "you get what you pay for"... But do you, do you really?

report this

Terence O'Halloran

Jul 10, 2013 at 13:57

Is the charitable reference in order to justify excessive saleries, exemplify the man, or make the donors to the FSA overhead feel better about wanton extravagence with our money and incompetance in the persuance of good governance?

Others have such trusts and donate their excess. More power to the wiow's mite, and sympathy for those who have lost their livelihood. Perhaps they can ask for a charitable bequest?

report this

James

Jul 10, 2013 at 14:00

What morons write these contracts? Herbert Smith?

Was Adair turner appointed after or before it was announced the FSA would be dispensed with?

Sants must have some pretty priceless photos in his safe.

The corruption is simply disgusting, but our politicians just let it continue - useless.

report this

Julian Stevens

Jul 10, 2013 at 14:08

A colleague just sent me this http://www.mortgagestrategy.co.uk/latest-news/cost-of-scrapping-the-fsa-jumps-75-to-44m/1074120.article

Maybe Hector Sants' estimate of (a staggering) £50m wasn't so wide of the mark after all.

FFS ~ how does any organisation manage to spend £44m on just re-badging itself from the FSA to the FSA whilst remaining in the same building doing much the same job and employing nearly all the same people? It's a national scandal.

report this

RegulatorSaurusRex

Jul 10, 2013 at 14:12

The green eyed monster shows it face.

report this

complacency rules

Jul 10, 2013 at 15:34

What an absolute bloody disgrace. He fails in his job which is why the FSA is being dismantled, he contributes to what has been the biggest financial failing ever in this country becasue he failed to regulate properly. He gets paid for gardening leave, and then gets paid a further amount because apparently he was unable to take up employment during his paid gardening leave period. Then hs is given a Knighthood. In the meantime we all pay higher levies due to the various failures caused by him failing to do his job properly. We now also have to fund his bonus.

Why did we not appoint Dick Turpin to the role of head of the FSA? At least he used a gun when he robbed us all.

report this

Terence O'Halloran

Jul 10, 2013 at 16:22

I have never had a reply to this letter or the detailed whole life review letters associated with this letter from Mr Sants or any member of the FSA stafff. We resolved it , by ourselves, at our cost, with theinsurer.

The same incorrect review practice is still in place!

Our ref: TPO/GMR

20th April, 2011.

PERSONAL AND CONFIDENTIAL

Mr H Sants

Chief Executive Officer

Financial Services Authority

25 The North Colonnade

Canary Wharf

LONDON E14 4HS

Dear Mr Sants

Today is the 20th April and my client, Mr P----- D----- and Mr P--- A------, the first client I wrote to you about, are just about to have their life insurances reduced by two thirds on a whim by the Phoenix Assurance Company. I have still not heard from you or from a member of your staff that might know anything about ‘Unit Linked Whole Life Assurance.’ Why not? This is important, particularly if one of these two clients was to die because I shall ensure that I sue you as the head of the department for the loss of any death benefit.

It is simply not good enough.

To add insult to injury I personally received the enclosed letter this morning from Aviva informing me that I have used up 2.22% of my lifetime allowance on my pension. It is a totally erroneous, irrelevant inconsequential but EXPENSIVE piece of nonsense information once again emanating from the diktats of the FSA.

You are undermining the very savings of the people you are supposed to be protecting through your department.

Each letter I write to you costs O’Halloran & Co about £25. I do not write them because I get pleasure from it; I write them because I am endeavouring to help not only my clients, but the FSA in providing a decent service. From the topics above, I am failing in both. Which means you are failing Mr Sants.

I do need a response to the situation regarding Mr D------ and Mr A------- because it is now two weeks since I wrote to you and both gentlemen are very concerned about their life assurance cover. It is a serious matter. Please deal with it expeditiously.

My thanks in anticipation of an early response.

Yours sincerely

Terence P O’Halloran BSc FCII AIFP

Chartered Financial Planner

report this

Smudger 2

Jul 10, 2013 at 16:35

No green eyes here Hectorsaurus Rex.

I love my modest income and sleeping soundly at night.

report this

Ian Lees

Jul 10, 2013 at 20:57

Only £ 300,000 before his departure to Barclays . . . .needed that amount to cover up the content and lack of scrutiny on behalf of his Peers .

report this

John S Mather

Jul 14, 2013 at 09:21

@Terry

The fundamental problem seems to be that our legislators assume that you can create what is generally accepted as morality through a set of rules which apply to all.

Then they create an exception such as the rule maker being unaccountable or even MP's which gets us back to an "Animal Farm" scenario

Terms are left ill defined and complex allowing hindsight interpretation of events tried in the media where guilt is assumed Advisers argue about semantics while the institutions laugh at the noise

Rules get more rules Innovation dies

report this

JM Keynes

Jul 14, 2013 at 09:31

@John S

Not just the institutions laughing - Sants is laughing all the way to the bank

report this

John S Mather

Jul 14, 2013 at 10:16

@JMKeynes

The problem is much bigger that one man.

Follow the money this is about having large companies giving advice in a prescribed way. Gathering money for large institutions

report this

Paul, Dublin

Jul 14, 2013 at 20:57

Messrs Sants andTurner are not the source of the problem. Personally I have a lot of time for Mr Turner after his famous after-dinner statement.

The problem is that there is a City and corporate elite and a convention that, to quote l'Oréal's Cheryl, "You're worth it". There must never be any questioning of the imperial garments of special competence and flair, the mystical ability that sets these men and women apart. Lending and investing are exact sciences of the rocket variety that mere moderately paid mortals are incapable of carrying out, but 'incentives' in the form of 'compensation' will galvanize the sleeping giants. Perish the thought that anyone should do the same for much less.

Hopefully the penny has dropped and illegality will be taken seriously, thus ensuring that bad apples are ejected and at least there will be a level playing field and the cake is being ravenously contested by a smaller, honest group.

report this

Ian Lees

Jul 15, 2013 at 09:46

@Paul Dublin - Unfortunately, it is clear that " messers ", Turner and Sants were employed to do a job - and paid exceptionally well for it. The job. . . to reduce independent Financial Adviser numbers - to such an extent that the Govt can " give advice " through MAS. With adviser numbers down to some 20,000 - through obsessive and obstructive regulation - exceedingly high costs - so many changes that Professional Indemnity becomes so expensive - as a result of the incompetence of pathetic MP's - who have no idea about their priveledged position - and are in the main incompetent. For example Teachers used and abused and replaced by " teaching assistants ". The NHS run down and doctors and nurses used and abused - and NHS Trusts set up - and the result is Death Camps within the NHS under the Conservative Govt - No beeter than Labour. The problem is there is no justice ! No one is responsible for the errors and omission and the destruction of another industry - on which the UK was built.

UK Plc - Run down and ravaged by the incompetent MPs.

report this

David IFA

Jul 15, 2013 at 10:53

@ Ian Lees. You have hit the Nail right on the head there Ian. I couldn't have put it better myself. It is high time a lot of people started seeing these useless Morons for what they are. Regulators and MP's are just self serving money grabbing hypocritical and Incompetant asses. Before you all start bleating I wrote and lobbied the MP's over RDR, over how the majority (average & lower income people) would be disadvantaged over not been able to afford Financial advice in the future. Recently I reported a well known Financial company for malpractice. The company gave me a final response which referred me to the Ombudsman. The Financial Ombudsman said the case was strong and wrote to the Financial company. This company then kicked the Ombudsman into touch with a letter stating that the decision they had made was a 'Commercial decision' and therefore rendered the FOS unable to act. I then took it the FCA 2 weeks ago. They have taken all the details but stated I will not get a report back from them if they decide to take the matter up with the Financial company. I argued with them that the particular fund effects a lot of Investors and I need to know if they are acting. They are not giving me any feedback whatsoever over my complaint. So these are the useless cretins at the new FCA we are dealing with. Good luck everybody!

report this

Big Cheez

Nov 14, 2013 at 14:47

Now he's left - due to having to do a proper day's work no doubt! How do these people get away with it for heaven sake!?

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this article:

Archive


Read more...

FCA bans two advisers over unsuitable Sipp advice

by Michelle Abrego on Apr 17, 2014 at 10:24

Sorry, this link is not
quite ready yet