FSA pays out £16.1 million to consultants

Posted by admin in on Tue, 25/05/2010 - 11:15
corporate-governance.jpg

It might have been threatened with extinction, but that didn't stop the Financial Services Authority (FSA) paying out more than £16.1 million in consultancy fees last year.

PricewaterhouseCoopers took home the largest sum, being paid £7.6 million to help outsource IT projects and provide accounting and investigation expertise. KPMG was paid £530,000 for six projects including tax advice for international staff seconded to work at the FSA.

Ernst & Young was paid £4.2 million for consultancy work, including an external review of the FSA's monitoring and thematic work which was aimed at helping guide the regulator's strategy for improving the standard of financial promotions compliance.
 
The FSA also spent:
  • £1.4 million with PA Consultancy on its Money Guidance Pathfinder pilot scheme, its fee strategy review and other projects
  • £1.1 million with Deloitte on research and help developing an intensive approach to prudential supervision and other projects
  • £1 million with BDO Stoy Hayward to help verify Gabriel returns and other projects which included credit quality reviews and financial accounting training.
  • £46,000 with Q5 for running workshops and help design documents.

The Bottom Line:If Mr Cable has his way...

"If Mr Cable had his way, all the big banks would be broken up and bonuses would be virtually eliminated - a sure-fire way in my view of guaranteeing an end to the UK’s ability to compete as an international financial centre. Let’s not forget that this is a man who is on record as saying that everyone who works in a bank has an ‘aristocratic lifestyle’ clearly demonstrating his lack of understanding of the sector." A tough line on bankers’ bonuses could make a brain drain of financial talent a distinct possibility, warns Paul Marsden. Read more

Links