FCA writes off £3.2m after software blunder

The FCA has been forced to write off £3.2m after failing to use software licences it bought, its annual report shows.

In May 2014, the regulator entered a one-year contract to purchase several software licences in which it made a prepayment in order to receive a discount.

However, the FCA says “utilisation” of the licences had “not materialised as originally anticipated” resulting in £3.2m being written off as “constructive loss”.

The contract expired in May 2015 and is not being renewed.

In addition, the FCA was forced to stump up £200,000 after failing to uprate staff pension contributions in line with pay rises.

The report shows 1,214 employees were paid the wrong pension contributions from October 2011 to July 2013.

Following an independent audit, the corrections were made and staff were compensated for investment loss while their savings were out of the market.

FCA chief executive Martin Wheatley received a £92,000 bonus for the year ending 31 March 2015, taking his total pay to £701,000.

Former FCA head of supervision Clive Adamson was paid a total of £438,000 to the end of May 2015, with a basic salary of £350,000.

In 2013/14 he was paid a total of £364,000 and a basic salary of £291,000.