The FSA Board has sanctioned a budget of 1.5% of the regulator's total salary bill to cover any pay "anomalies" in the coming financial year.
Although it has not allocated any funds for general pay increases - adding most staff will not receive a rise - the amount agreed by the Board runs into the tens of millions.
In its business plan for 2010/11, published yesterday, the regulator says it will spend almost £350m on staff costs in the coming financial year after confirming it is hiring an extra 460 individuals to deliver its "intensive" supervisory approach.
Staff costs will total £346.9m in the 12 months ending March 2011, 16% - or £47.7m - more than 2009/10. It will account for 73% of the FSA's gross costs.
The regulator says it will be hiring an additional 460 staff in 2010 to implement Solvency II and to deliver the supervision required for the very largest firms.
This is on top of the 280 extra staff hired last year as part of its Supervisory Enhancement Programme, which it anticipates will have an annual running cost of £40m.
The FSA's budget for 2010/11 has risen 18.3% to £491m, up from £415m last year
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