Walker Review will damage City recruitment, says expert
GOVERNMENT proposals for a massive overhaul of banking industry rules threaten to severely undermine the ability of human resources (HR) executives to do their job, an expert on regulation warned yesterday.
Chris Pilling, head of Complinet – which advises around 80 per cent of FTSE 100 firms on regulation – has warned the recent Walker Review of banking rules may allow City watchdog the Financial Services Authority (FSA) to veto HR decisions.
He said this paves the way for authorities to prevent firms from making their own decisions about who they hire. And he said the proposals are likely to slow down the recruitment process, damaging the City’s international competitiveness.
“Meddling in HR issues is clearly a step too far,” he said.
Pilling criticised FSA chairman Lord Adair Turner, stating his recent suggestion of a new tax to curb bankers’ pay demonstrates “that the FSA has vaulting ambition far beyond doing its day job of regulation”.
The Walker Review, under consultation until October, proposed rules forcing top staff to take exams despite existing experience, and tighter controls on non-executive directors.