RBS Hires Ex-FSA Director Jon Pain as Head of Regulatory AffairsGavin Finch
Royal Bank of Scotland Group Plc, the recipient of the world’s biggest banking bailout, hired Jon Pain as its head of conduct and regulatory affairs.
Pain was previously partner for financial services at accounting firm KPMG LLP and had earlier led the Financial Services Authority’s efforts at recapitalizing Britain’s banks in the wake of the 2008 crisis, the Edinburgh-based lender said in a statement today. Pain will take up the newly created role in August.
RBS is the third U.K. bank to appoint a former regulator to a senior compliance role as they seek to move on from a series of missteps including the improper selling of loan insurance and the rigging of interest rates. Lloyds Banking Group Plc said last month that Irish central bank Deputy Governor Matthew Elderfield will join as director for conduct and compliance and Barclays Plc last year hired former FSA Chief Executive Officer Hector Sants as head of compliance, government and regulatory relations.
Pain will report directly to CEO Stephen Hester and join the bank’s group executive committee with responsibility for conduct and compliance oversight, RBS said.
Hester is struggling to turn around the 81 percent government-owned lender and begin the process of returning it to private ownership. The bank, which has announced more than 37,000 job cuts since its record 45.5 billion-pound ($69 billion) bailout in 2008 and 2009, will have completed most of its restructuring next year, allowing the government to start selling down its stake by the end of 2014, Hester has said.
RBS was fined $612 million in February for rigging benchmark interest rates such as Libor and has set aside more than 2 billion pounds to compensate customers wrongly sold payment-protection insurance.