Gamekeepers and poachers should be friends
We noted in August 2010 that staff were leaving the FSA in record numbers after the general election, including all three managing directors.
So it was no surprise to hear on Tuesday that former Managing Director of Supervision, Jon Pain, (who resigned last July) is taking up a partnership role within KPMG's regulatory practice. This follows news in February that Sally Dewar, former Managing Director of Risk, has re-surfaced at JP Morgan Chase as a managing director.
Significant numbers of lawyers and other staff from the FSA want to use their considerable experience in the private sector - both Richard Burger and I served at Canary Wharf. The insights of former regulators are valuable to those that can afford their services but we have to wonder at the risks for all if the new regulatory regime is inadequately staffed.
Ultimately, the system will work well if private sector specialists take their skills to the FSA. The key is for the FSA to appreciate the revolving-door nature of much of its hiring and to make adjustments internally so that staff turnover is not allowed to disrupt its activities. I was therefore pleased to read the announcement today that the FSA has appointed former Stroud & Swindon Chief Executive, John Sutherland, as a senior adviser on the building society sector.