FCA sees employee numbers fall slightly as it bolsters staff support

According to the regulator’s annual reports and accounts published today (July 19), the number of full-time equivalent employees, including executive directors and fixed-term contractors, was down on the previous year.

In 2021, the FCA’s staff numbers stood at 3,903.

Total group operating costs for the FCA were £586.8mn, of which staff costs were 58 per cent (£339.7mn).

Of the total operating costs, the FCA said recruitment, training and wellbeing cost £10.1mn (1.7 per cent). 

The FCA said expenditure was lower than planned due to a lower headcount, following a return to pre pandemic levels of attrition and recruitment challenges, generating lower staff costs.

The regulator said developing the capability of all colleagues across the organisation is a key focus and throughout 2021/22 the FCA Academy provided a range of solutions to support short and long term regulatory priorities, technical skills and broader soft skills development. 

This included a provision of virtual and online training to support the remote and hybrid working environments and a range of regulatory refresher training. 

The City watchdog delivered 2,960 virtual classroom training days over the year with 38 per cent of colleagues attending at least one of these formal training events.

A targeted approach for development was also taken throughout the year providing shorter more specific sessions for manager development and colleagues impacted by the regulatory reviews

As part of its wellbeing approach, the FCA said it is committed to developing a working environment that protects the physical and mental wellbeing of all. 

In order to provide staff access to relevant support and information, the FCA said it offers a comprehensive wellbeing programme which comprises four core areas: mental health, musculoskeletal, cancer pathways and preventative care. 

The strategy seeks to raise awareness, educate, inspire people and develop line manager knowledge, skills and confidence. 

The FCA said its staff have access to a range of support services such as private medical insurance, employee assistance programme, a virtual GP service, physiotherapy and occupational health. 

“Throughout 2021 we have continued to focus on post pandemic support, giving greater consideration towards colleagues’ physical and mental wellbeing especially while working from home,” it said. 

“During 2021/22 the average days per year lost per person due to sickness absence increased to 6.7 days (2021: 4.4 days) comparable to 7.3 days in 2020, prior to the pandemic.”

Remuneration

The FCA said the impact of coronavirus and wider economic conditions resulted in a need to make some short term changes in its approach.

The executive directors and the FCA board decided in February 2021 not to increase employee salaries for 2021/22, with the exception of a 1.2 per cent salary increase for those paid below £24,000 per annum on a full-time equivalent basis.

Graduates and apprentices received stepped increases that are part of their respective schemes, in total 6 per cent of eligible employees received a salary increase.

“We also reduced the funding available for the discretionary performance bonus scheme and prioritised awards for the highest performers below director level,” it said. 

“The amounts paid were based on a fixed value as calculated as a percentage of the average salary for each grade. These started at 11 per cent for the most junior roles and stepped down to 8 per cent for the most senior roles, resulting in an award between £3,100 and £16,795 respectively.”

According to the report, Charles Randell received a fee of £170,000 as chair of the FCA and received a separate fee of £20,000 as chair of the PSR during the year. 

Randell stepped down as chair of the FCA board on 31 May 2022 and the chair of the PSR board on 31 March 2022.

Meanwhile, Nikhil Rathi was appointed as chief executive on October 1, 2020 on an annual salary of £455,000. He is a member of the FCA pension plan and is entitled to receive an annual pension contribution equivalent to 12 per cent of his salary. 

Rathi also voluntarily contributes an additional 1 per cent of his salary into the pension plan which is matched by the FCA, resulting in an annual pension contribution equivalent to 13 per cent of his salary. 

Earlier this month, Unite, the union representing rights of employees at the FCA, has put a scheduled two-day strike “on pause”.

The union did have a mandate to continue industrial action until the end of October, but now says it has “secured a route to union recognition” making strike action - which it described as a “last resort” - unnecessary.

In a note on its website, the union said: “Following extensive consultation with colleagues and Unite HQ, pausing industrial action now seems the best way for us to move forward with the next stage of the campaign in a constructive and collaborative manner to achieve our aims.”

The union told all FCA staff members to work normally from June 27 onwards, including on previously assigned strike days July 5 and 6.

In April, three quarters (75 per cent) of FCA staff with Unite memberships voted in favour of the action against the regulator over disputes around changes to pay and conditions, with 90 per cent voting to support industrial action short of strike action.

On May 4 and 5, FCA staff went on strike outside the regulator’s London and Edinburgh offices, with many more taking part remotely. FTAdviser understands around 240 FCA staff walked out.

In London, strikers held placards, flags and leaflets urging the FCA to listen to its staff. They held signs reading ‘FCA don’t take our pay’ and ‘FCA staff ignored too long’.

sonia.rach@ft.com

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