City sackings and suspensions reach five year high

14 Jan 2013 | 08:26 am | 1 min. read

- Contentious exits up 76% in financial services sector The number of sackings and suspensions of staff at financial institutions has reached its highest level in 5 years, according to figures obtained by international law firm Pinsent Masons.

Data obtained by Pinsent Masons through a Freedom of Information request shows that 1373 financial services employees were dismissed or suspended in 2012 -  representing a 76% increase in dismissals and suspensions compared to the previous twelve months.

Pinsent Masons says that changes to the employment status of individuals who require FSA authorisation to carry out their function must be registered with the regulator. FSA-regulated businesses are also expected to indicate where employees have been sacked or suspended, most commonly as a result of suspected wrongdoing.

In addition to sackings and suspensions, the data suggests that the number of job losses in the sector has reached its highest level since the peak of the financial crisis in 2008. 36,868 people in the sector lost their jobs in 2012, bringing the total number of people to have left their posts in the past 5 years to 177,697.

Helen Farr, a London-based Partner in the Financial Services team at Pinsent Masons, says:

"The FSA has increasingly shown that it is cracking down on financial crime and market abuse. Financial services firms are operating under increased scrutiny and as a result employers are imposing industry rules more strictly.

“FSA enforcement activity has clearly had an impact on firms' willingness to tolerate wrongdoing. Firms now appear much more likely to discipline employees for offences.   The rise in number of staff dismissed from 778 to 1373 in a twelve month period  suggests that the threat of enforcement and reputational damage associated with rogue traders such as Kweku Adoboli are clearly having an impact.

"The total number of job losses in the sector is striking. While it should be kept in mind that many of these people may have been re-employed and some will have simply transferred internally, the numbers certainly tell a story.

"It will be interesting to see the impact that further reforms around ring fencing or formal separation of business divisions, as foreseen by the Vickers and Liikanen Reports, will have on the banking sector."

 

2008

2009

2010

2011

2012

'Clean' withdrawals (eg. internal movement of staff, resignation, redundancy, retirement or end of contract.)

36639

34255 

32939 

33435

35495

'Qualified' withdrawals (eg. dismissals and suspensions)

803 

1095

885 

778 

1373

Source: Pinsent Masons

Latest press releases

Show me all press releases

Pinsent Masons has advised Tokai Carbon on the sale of its German subsidiary TOKAI ERFTCARBON GmbH

Multinational law firm Pinsent Masons has advised Tokai Carbon Co., Ltd. (“Tokai Carbon”) on the sale of its German subsidiary TOKAI ERFTCARBON GmbH (“TEG”), to Lenbach Equity Opportunities III. GmbH & Co. KG, which is exclusively advised by DUBAG Investment Advisory GmbH (“DUBAG”).

Pinsent Masons advises on Shackleton exit

Multinational law firm Pinsent Masons has advised the shareholders of independent financial advisory and wealth management firm Shackleton, including the private equity buy-and-build specialist Sovereign Capital Partners, on the exit to Lee Equity Partners.

Pinsent Masons named by The Times as a Top 50 Employer for Gender Equality

Multinational law firm Pinsent Masons has been announced by Business in the Community as one of The Times Top 50 Employers for Gender Equality in 2025. This year’s list marks the sixth time that the firm has been recognised for its commitment to embedding gender equality into all levels of the organisation.

People who viewed this press release also viewed

Show me all press releases

Pinsent Masons advises on Shackleton exit

Multinational law firm Pinsent Masons has advised the shareholders of independent financial advisory and wealth management firm Shackleton, including the private equity buy-and-build specialist Sovereign Capital Partners, on the exit to Lee Equity Partners.

Pinsent Masons act as key adviser to Dalmore Capital in relation to acquisition by Royal London

Multinational Law firm Pinsent Masons played a key role in advising the UK-based infrastructure asset manager Dalmore Capital through its acquisition by UK pensions and investment giant Royal London.

Pinsent Masons appoints employment partner in Aberdeen

Multinational law firm Pinsent Masons has hired Gillian Harrington to join the firm’s Aberdeen office as employment partner from 6 May.

For all media enquiries, including arranging an interview with one of our spokespeople, please contact the press office on

+44 (0)20 7418 8199 or 

Location contacts

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.