FSA is rapped as it asks for 10% rise in funding

An increase of nearly 10% in the FSA budget has sparked criticism that the regulator is not cutting costs like the rest of the public sector.

At the end of the week in which the chancellor of the Exchequer announced the first in a string of cuts to public spending, the FSA confirmed its funding requirement for the current financial year is £454m – up 9.9% on the figure for 2009/2010.

The FSA defended the increase by saying it was only spending money on “essential areas of work”, such as the implementation of Solvency II.

However, compliance consultant Branko Bjelobaba criticised the Canary Wharf-based regulator for not making economies like other public bodies.

“If the government is telling secretaries of state to get out of their cars, then the FSA can’t ignore it,” he said, adding that the regulator should be more transparent regarding the pay and rewards of senior staff.