Warning shot for watchdog

THE City watchdog faces a grilling from MPs after advertising for a chief economist to be paid £100,000 'plus excellent benefits'.

The Financial Services Authority wants someone with the 'gravitas' to lead 20 economists and provide 'strategic leadership'.

This newly created job is part of a major expansion of the FSA's economics department, which at present employs fewer than 15 people.

'I think it would be appropriate for us to have a look at this after the General Election,' said David Heathcoat-Amory, a key member of the backbench Treasury Select Committee, which oversees the FSA.

'I would certainly want to know why a regulatory agency needs so many economists.' But the FSA insisted that its expanded economics department was essential.

It said: 'These people are working on the cost-benefit analysis of what we do and studying the impact that we have on regulated firms.'

With more than 2,300 staff, the FSA's employment costs were more than £133m last year, up from £128.8m the previous year.

? A PLEDGE to deregulate the booming private equity industry will be made today by Conservative Treasury spokesman Richard Spring.

He will say: 'Venture capital is a matter for professional investors. They can make judgments.'