FSA plunders City to boost enforcement division

The Financial Services Authority (FSA) is beefing up its enforcement capability as it moves towards a principles-based regulatory regime.

Despite the fact that around 30 per cent of the City watchdog’s existing workforce will have left by the end of this year, the FSA has already recruited seven managers and 17 technical specialists with the aim of attracting further staff in the coming months.

The new recruits will all work under the FSA’s head of enforcement Margaret Cole, a former White & Case litigator who joined the regulator two years ago.

Those that have joined at the managerial level have been divided between the FSA’s retail and wholesale teams, with the former focusing on financial services and products for retail investors while the latter concentrates of the equity markets, with an emphasis on market abuse.

The technical specialists work in the area of financial forensics and investigations.

A spokesperson for the FSA said: “The key thing about this recruitment is that it is ensuring we get the right quality of staff to face the challenge of the move towards principles-based regulation. We are being proactive about making sure that enforcement is a high-performing division that achieves the right outcomes.”