Fewer bankers but extra red tape as City job cuts laid bare
THE number of people working in financial services jobs approved by the City regulator has fallen to its lowest level for seven years, according to new analysis.
The total number of people on the Financial Services Authority Register dropped to 157,587 in December last year, down 6.9 per cent from the recent high of December 2007. By contrast the figure stood at 140,920 at the end of 2004.
The data, from IMAS-insight, also shows the number of companies authorised by the FSA has been in decline since before the onset of the financial crisis. The figure has fallen at each year-end since December 2005, even though Lehman Brothers did not collapse until September 2008.
The total number of authorised entities hit 18,882 in December of last year, down 21.6 per cent from the end of 2005.
The number of people and new companies winning authorisation have also fallen to a fraction of the levels of 2004.
Nick Stevens, chief executive of recruiter Eximius Group, said: “We see reduced demand for financial services skills across the board with the exception of regulatory requirements like Basel 2.5 and Basel 3.
“Financial services are reduced this year from last year and reduced in 2011 from 2010.”
There has, however, been an “enormous” increase in demand for staff with regulatory skills since 2008, Stevens added.
The number of people working in FSA-approved roles is likely to fall further when they are next published. Already this year Lloyds has announced plans to cut 990 jobs and Citigroup has warned it is considering further cuts to its securities and banking division.
Royal Bank of Scotland said on Friday it would close some parts of its equities operations while National Australia Bank, the owner of the Yorkshire and Clydesdale brands, has also begun a strategic review as it considers a long-rumoured sale of its UK interests.
The FSA itself will be formally scrapped next year and is being replaced by two agencies covering companies and consumer protection.