Financial Conduct Authority ups vetting of senior bankers
The number of interviews the Financial Conduct Authority (FCA) has held to vet staff proposed for senior roles at financial services firms jumped 27 per cent to 233 in 2018.
FCA data provided to employment law firm Fox & Partners showed the number had risen from 183 the previous year.
The law firm said the rise is a consequence of the FCA taking a tougher approach to applications for senior positions such as chief executives, finance heads and risk heads.
The number of interviews has risen 70 per cent over five years from 137.
The interviews are designed to ensure the candidates have the necessary experience, skills and integrity for the role.
Fox & Partners said failing an interview does not just create an operational challenge for the business but can also create a legal risk.
Partner Ivor Adair said: “If the candidate is failed by the FCA employers need to be careful not to mishandle that outcome as this could provoke an employment dispute.
“Employers will want to properly support and prepare candidates for these interviews and be careful not to put up candidates where there is a significant chance they will be failed by the FCA.”
The FCA allows candidates to withdraw applications after interviews have identified gaps in their skills.
This enables them to avoid the FCA having to formally fail that candidate after their interview.
Fox & Partners said the more stringent approach follows a series of failures at financial services firms.
Former FCA chief executive Andrew Bailey has taken the top job at the Bank of England, despite criticism from some MPs and campaigners that the FCA did not do enough to prevent failures.
The FCA is currently searching for a new chief executive to replace Bailey.