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 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.

Pinsent Masons bolsters UK corporate practice with hire of expert healthcare and higher education partner

Multinational law firm Pinsent Masons has hired corporate partner, Rachel Soundy, to join the firm’s Birmingham office.

Pinsent Masons advises Balbec Capital on its first European public securitisation

Multinational law firm, Pinsent Masons LLP, has advised IGCF VI Euro, L.P. a sub-fund of Balbec Capital LP, a global alternative investment manager headquartered in the United States on its first European public securitisation in relation to the issuance of notes totalling EUR 392 million backed by a portfolio of reperforming Spanish mortgage loans, arranged by Goldman Sachs.

People who viewed this press release also viewed

Show me all press releases

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.

Pinsent Masons advises Balbec Capital on its first European public securitisation

Multinational law firm, Pinsent Masons LLP, has advised IGCF VI Euro, L.P. a sub-fund of Balbec Capital LP, a global alternative investment manager headquartered in the United States on its first European public securitisation in relation to the issuance of notes totalling EUR 392 million backed by a portfolio of reperforming Spanish mortgage loans, arranged by Goldman Sachs.

Pinsent Masons expands pensions team with partner hire

Multinational law firm Pinsent Masons has appointed pensions partner Anna Taylor, to join the firm’s Finance and Projects team in London.

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.