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FCA directors have bonuses frozen over life sector bungle

by James Phillipps on Jul 10, 2014 at 11:41

FCA directors have bonuses frozen over life sector bungle

The Financial Conduct Authority (FCA) withheld bonuses for its senior staff pending the outcome of the independent investigation of its mishandled announcement of a probe into life insurance.

The news of the probe, which was only given to the Telegraph in January, prompted a sell-off in insurers’ shares, wiping millions off their value. Chancellor George Osborne attacked the FCA over the move, saying he was ‘profoundly’ concerned’ by the debacle, warning disciplinary action could follow.

In April, it was announced that the independent investigation is being led by Clifford Chance litigator Simon Davis and could take up to 12 months.

In its annual report released today, the FCA said: ‘The remuneration committee has agreed, following representation by the chief executive [Martin Wheatley, pictured], not to award bonuses for the year to 31 March 2014, pending the publication of the independent investigation into the handling of the FCA’s announcement of proposed supervisory work in the life insurance market.

‘Once the outcomes of the review are known, the remuneration committee will confirm whether the executive directors’ bonuses will be awarded and at what level.’

Wheatley received £610,000 over the year, down from £667,000 the previous year, as he earned no bonus, although his basic salary did rise by £30,000 to £460,000. Clive Adamson and Tracey McDermott, with total remuneration of £321,000 and £297,000 respectively, where the next highest earners.

The median remuneration of FCA employees was £62,616, down from £64,301 last year.

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