Oxford, United Kingdom (PressExposure) May 28, 2013 -- Former Financial Services Authority managing director Jon Pain takes on a new role to oversee the regulatory affairs of the Royal Bank of Scotland. The newly created position is part of RBS' strategy to clear up its name after being involved in a scandal with some of the UK's biggest banks.
"The creation of this position sends a clear message about how we want to do business - servicing customers well, completing our return to a safe and conservative risk profile, and generating sustainable returns for shareholders," said Stephen Hester, RBS chief executive. "If we achieve these objectives, and do so in the right way, RBS will become a really good bank."
As head of the conduct and regulatory affairs, Mr Pain will join the ranks of RBS' senior executives and will likely earn millions of pounds a year. His appointment comes as big banks were fined for illegal behaviour and damaged by mis-selling scandals. RBS, for one, has been fined GBP390 million for rigging Libor, an interest rate set by London's major banks.
Barclays appointed Hector Sants, former FSA head, to oversee its regulation early this year. HSBC, for its part, has made changes into its regulation and compliance divisions after receiving a GBP1.2 billion fine from the US authorities for money laundering.
Mr Pain's appointment is just one of the major management changes implemented by RBS. CEO Hester has asked Bruce van Saun to head Citizens Bank, a member of RBS Americas. Nathan Bostock will take over Van Saun's position as finance director. More importantly, the RBS CEO plans to privatise RBS, a process that might happen next year.
Mr Pain worked in the FSA until 2011. He was one of the officials who left before the agency was divided into the Financial Conduct Authority, which oversees city behaviour, and the New Prudential Regulatory Authority, which regulates the biggest banks.
After leaving the regulatory agency, Mr Pain served as partner for financial affairs for accounting firm KPMG LLP. He held various management positions in Lloyds TSB from 1973 to 2008.
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