Margaret Cole to quit FSA after being passed over for top job

Thursday 16th February 2012

FSA managing director Margaret Cole is to leave the organisation, which is in its final full year of operation.

Cole, once tipped to succeed Hector Sants as chief executive, quits in just six weeks’ time, but will then be on gardening leave for six months.

Her departure means she will not be going on to the new Financial Conduct Authority, although she set up the conduct business unit at the FSA which will form its foundation.

It is understood she went for the job of chief executive of the FCA, which went instead to Martin Wheatley.

Treasury Select Committee member Andrea Leadsom went on record last November saying there were no women at the helm of the FSA, FCA, Bank of England or any of the UK’s four biggest banks, and said that Cole should have been appointed over Wheatley.

Cole, who has been with the regulator for nearly seven years, said: “I joined the FSA to help in the fight against wrongdoing within the financial services industry and I believe a lot has been achieved in my time here.

“We have shown that the FSA is not afraid to take on difficult cases and will not shy away from pursuing criminal prosecutions, however difficult to prove.

“It is painstaking work and the legal process takes a long time but there are people sitting in prison now because of our commitment. And the next 12 months will see more trials and more convictions as the pipeline of our cases comes to fruition in the courts.

“It has been a challenging but rewarding few year, and I believe, with the help of a team of quality people, I have created a successful enforcement platform to take into the UK’s new regulatory authorities. The time has come for me to seek a fresh challenge, knowing that I leave the continuation of a winning strategy in safe hands.”

Hector Sants, FSA chief executive, paid tribute to her, saying: “Margaret has been pivotal in transforming the FSA’s approach to enforcement and she leaves a substantial legacy, widely respected in legal, regulatory and international circles.”

He said the work she had done laid the foundations for the future conduct regulator. He said: “I would like to express my personal thanks, and those of the organisation, for all that Margaret has achieved and I wish her every success in whatever future challenge she chooses next.”

Also paying tribute was Lord Adair Turner, FSA chairman, who said: “On behalf of the FSA Board, I would like to extend my appreciation to Margaret for her outstanding contribution to the effectiveness of the FSA over the years, her strong management credentials and for the expertise and quality judgement she has brought to our board discussions. She has made a lasting impact.

“We will be sorry to lose her for the organisation’s final year but she will depart with our thanks and best wishes.”

Martin Wheatley, CEO-designate of the FCA, said he was “enormously grateful” to Cole for the work she had done.

Cole joined the FSA as director of enforcement in July 2005, following 20 years in private practice, specialising in commercial litigation. Managing a division of 450 people, she had responsibility for enforcement policy, intelligence gathering, forensic investigations, and civil and criminal proceedings in areas that include market abuse and financial crime.

She led the FSA’s drive to deliver its ‘credible deterrence strategy’ which in 2011 saw 11 convictions for insider dealing with 16 awaiting trial and fines levied totalling £66m.

She was appointed to the FSA board as managing director of enforcement and financial crime in September 2010, and in April 2011 took on the role as the first managing director of the conduct business unit which will go on to become the Financial Conduct Authority under the new regulatory structure.

She will remain in her current role and on the FSA board until the end of March, prior to the creation of ‘twin peaks’ within the FSA on April 2. She will then be on gardening leave until August 31 but may represent the FSA during that time on issues not related to individual regulated firms or ongoing investigations.

Her pay last year was £263,686.