24th February 2022

FCA Laptops

I imagine most advisers and casual observers would agree that the various financial services regulators have been profligate when it comes to spending other people’s money.  In fact, as the FCA is fully funded by other people’s money, it enables them to spend whatever amount they wish on whatever they wish in the certain knowledge that the following years budget will be laid before the insurers and regulated bodies who have no option but to cough up the funds to balance it. 

Allied with the every expanding bill for FSCS payments this represents a heavy burden on the regulated.  No wonder many advisers believe that there is an agenda that is designed to push them into more easily controllable networks or out of the industry.

The FCA and the FSA (before it smoothly phoenixed into the FCA) have had scant regard when it comes to distributing its budget and extravagant may prove an apt descriptive.  Many years back it was discovered that they had spent over £135,000 on artworks for the Canary Wharf offices.  At around the same time an FOI request uncovered that taxi rides costing up to £400 were being used by staff.

In a similar vein, the regulators employee handbook provides financial limits for hotel stays both in the UK and abroad and another FOI request discovered that, surprise, surprise, these limits were not being adhered to.

Which brings us to today.  Last July the financial press advised that the FCA had ‘lost’ 323 laptops and other electronic instruments leading to last November’s Financial Adviser confirming that £5m was being spent on laptops for employees.

This seems an act of staggering benevolence when one presupposes that the new Endeavour Square offices are stacked with desktop computers.

A recent FOI request provided additional details, couched in the obligatory reguspeak.  I might add that it took some 45 working days to tease this information from them despite the legal requirement being 20 working days.  

We are advised that, 

• “The FCA is undertaking a complete refresh of the existing laptop estate.” 
• The number of laptops purchased, between April-August 2021 was 5,850 – one for every employee 
• The price is commercially sensitive but we are told it is between £5m-£10m
• They are all Hewlett Packard, although the actual model or models was not advised
• Section 43 (Commercial interest) of the FOIA was used to avoid providing details of what, if any, discount had been negotiated
• The FCA does not pay for users home Wi-fi costs 

Having a friend who was a sales manager at Hewlett Packard I can estimate a discount in the region of 50%/60% which suggests the list price of each model could be around £2,500 with a total spend in the region of £7m.

Is this largesse or is it reasonable for the regulator to spend such sums?  Were the existing laptops, those that were not lost, no longer fit for purpose?  What happens to the remaining ‘old’ laptops, are they sold, destroyed, given to staff for recreational purposes?

I am sure we all have our views but what I am certain of is that few advisers will relish the news that their fee money is being used in such a manner.  Perhaps it is time for the National Audit Office to pay a visit to assess whether the FCA budget and its expenditure meets reasonable standards or not.

Alan Lakey

Director @ Highclere Financial Services & CIExpert

Regulation