BROWN’S BRITAIN REWARDS FAILURE.

BROWN’S BRITAIN REWARDS FAILURE.

MP EXPRESSES DISBELIEF AT £23M BONUS FOR FSA STAFF.

SNP Treasury Spokesperson, Stewart Hosie MP, has expressed disbelief that the Financial Services Authority (FSA) is to announce plans for significant increase in bonuses for staff.

The current FSA bonus structure allows payments of up to 12.5 per cent, but under the new "talent management initiative" that would rise to 15 per cent. Consequently, the FSA looks likely to pay out up to £23 million in bonuses this year.

Commenting, Mr Hosie said:

“This will jar with the millions of ordinary taxpayers struggling to make ends meet in a recession caused by a decade of financial mismanagement.

“Bonuses should only be paid for a job well done. Weak regulation and oversight are to blame for this banking crisis.”

The additional money needed to fund the bonuses will to be raised through increases to the fees the FSA charges authorised institutions such as high street banks.

Mr Hosie said:

“As there is now billions of pounds worth of public money in many of the banks, these bonuses will be paid for by the taxpayer.

“Gordon Brown said recently he would not reward failure – he needs to honour his promise and scrap bonuses at the FSA.”