Mervyn King wants a new breed of regulators focused on public service and not huge banking-style pay packages when responsibility for financial regulation transfers from the FSA to the Bank of England in 2012.
The Governor of the Bank of England said it was time to move away from the model where people take two or three years out to work as a regulator before returning to City of London jobs, the Telegraph reports.
"What we really want is a cadre of people who see their professional motivation in life as being regulators working in public service," he told the Treasury Committee.
"We want to build up now in the area of regulation is not a team of what I would call bankers, but a team of people who clearly understand banking, but who have professional commitment to a lifetime of public service as a regulator."
He conceded it would be challenging to bring in highly-paid existing FSA staff alongside lower paid Bank staff.
However, over the longer term "we will have to work towards the harmonisation of the terms and conditions of the Prudential Regulation Authority and the rest of the Bank", he said.
People who transferred from the FSA would remain on their existing terms and conditions, King added.
other way round?
No, the FSA were not keeping up they were paying over the odds.
My experience was of seemingly better paid FSA staff than the product providers and banks staff, especially when you take into account the FSA pension.
Some of my colleagues left for better paid (and more secure) jobs at the FSA
Posted by: Andy Newman
29 Jul 2010 | 16:18
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