Regulation  

Questions over Sants’ move to Barclays

The head of compliance at the bank had been on a three-month leave of absence after being diagnosed with stress and exhaustion last month, but has decided not to return to his post in the new year.

The former chief executive of the FSA is also leaving his new role on the board of the British Bankers Association.

In a statement issued by the bank last week, group chief executive Antony Jenkins confirmed that Sir Hector had stepped down after just 10 months, saying he had “made significant progress” in shaking up compliance procedures and building relationships with the regulator and government.

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The statement said Barclays would be conducting an internal and external search to replace Sir Hector, along with Shaygan Kheredpir, chief operations and technology officer, who left the bank to become chief executive of US technology firm Juniper Networks.

It is understood Sir Hector will continue to be a trustee of the Sants Charitable Trust, a children’s charity in Oxford.

Sir Hector joined Barclays as head of global compliance on a reported £3m remuneration package at the end of last year, leaving the FSA three months before it was dissolved.

Gill Cardy, director of the IFA centre, said: “It was not necessarily appropriate for him to have left the regulator and taken a high-profile position so quickly. The fact that all that regulatory knowledge goes into the private sector, and that senior figures can have such an inside track, is alarming.”

Ian Gordon, banking analyst at Investec Securities, said: “This always appeared to be a politically expedient and expensive appointment.”

CV:

Head of compliance – Barclays 2013

Chief Executive – FSA 2007-12

Managing director of wholesale and institutional Markets – FSA 2004-07

CEO of European, Middle East and Africa – Credit Suisse First Boston 2001-04

Head of international equities and vice chairman – Credit Suisse First Boston 2000-01