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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.

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  • Chris Hulme 6th July 2015 at 9:22 am

    Incompetent and inept. On what commercial planet can this be considered a success that deserves bonuses? Oh, yes that’s it – they’re spending other peoples money.

  • James Mather 3rd July 2015 at 2:16 pm

    Indeed. Who regulates the regulator?!

  • Stuart Duncan 3rd July 2015 at 12:27 pm

    The FCA really do need to be held to account for this sort of thing. Perhaps they can demonstrate an equivalent saving in some of their costs in the coming year, otherwise it simply isn’t acceptable to keep taking our money. Very poor and somewhat indicative of their attitude.

  • opus appleby 3rd July 2015 at 12:14 pm

    don’t worry the tories will sort it llololoolo hahahahahaha

  • opus appleby 3rd July 2015 at 12:13 pm

    yes will they be fining themselves? or will Wheatley be getting another bonus?

  • John Tidswell 3rd July 2015 at 12:13 pm

    Not too worry though, it’s not there money they are throwing away. It is the same story with call Government departments, it’s not there money there wasting so there not really that bothered.

  • Carl McGovern 3rd July 2015 at 12:07 pm

    Who is it that funds the FCA? perhaps that’s who relly wrote off the £3.2 Million and also stumped up £200,000 to upgrade staff Pension contributions. I find it ironic that the FCA chief receives a bonus when these mistake have been made, as when an organisation the regulate, makes such mistakes, the get fined. I wonder who will fine the regulator?

  • mic2002 3rd July 2015 at 12:04 pm

    £3 million squandered and the boss gets a bonus and a pay raise? Disgraceful.

  • James Mather 3rd July 2015 at 12:02 pm

    And who ultimately pays these extortionate salaries?