In a transcript of the board’s December meeting, it was recorded that the rate of “external turnover of staff had increased to 9%”. The minutes also read that “the executive was monitoring areas of concern”.
External turnover of staff means the staff that have left the FCA as opposed to those that have changed positions internally.
Figures released as part of a freedom of information request last November revealed the FCA’s staff were quitting at an annualised rate of 12% in the six months to September, following the split of the regulator into two bodies.
This was almost twice as fast as at the Financial Services Authority (FSA), which posted figures of 6.9% in its final year and 7.8% on average over the past five years.
But an FCA spokesperson said an increased rate following the restructuring process had been expected.
He said: “Turnover of staff at the FCA is broadly in line with historical rates at the FSA, and low when you consider the huge changes of the last year. We have also benefited from bringing in talented individuals from the private sector and other regulatory bodies – it isn’t a one way traffic – including recent senior appointments in the supervisory team.
“However, as with all big organisations, the FCA’s board and executive committee keeps a close eye on staff turnover. This is to ensure that the FCA is recruiting and retaining the best staff.”
The board minutes also showed that the FCA was contemplating commissioning an “independent review of the regulatory decision making process, including the Regulatory Decisions Committee (RDC)”.
The RDC, which was set up by the regulator’s board, is responsible for taking decisions on whether to grant contested applicants entries into the regulated community and for issuing warning and decision notices for certain enforcement cases on behalf of the FCA.
The FCA said a review into the enforcement decision making process was likely to be commissioned following the passage of the banking reform bill.
