Star fund manager Patrick Evershed said he raised concerns with the FSA about allegations its staff bonuses are tied to the regulator's relationships with institutions, in the latest twist during his employment tribunal.
Evershed made the comments having emailed the FSA to highlight a dispute he had been having with New Star about his former clients and what would happen if they followed him to his new firm.
At the end of the email, Evershed added: "If this is the case it is a scandal and it explains why the FSA has failed to protect the interests of my clients."
In an email sent to an FSA employee, Evershed said he had been told by MP Michael Fallon that FSA staff are paid bonuses in part for maintaining good relationships with the firms they monitor. Fallon is MP for Sevenoaks and deputy chairman of the Conservative party.
The allegations were contained in an email from Evershed to the FSA dated 4 May 2009 which was submitted to the tribunal.
Evershed said in the email: "I had my meeting with Michael Fallon a couple of weeks ago. He listened to what I had to say, he then went on to explain that a former employee of the FSA had told him that FSA staff were paid bonuses at the end of each year and that these were based in part on whether the employee had maintained good relations with the institutions they were monitoring."
Evershed then warns he is meeting with a crew from Channel 4's Dispatches programme, adding he wanted a response before the crew arrived in the next few days.
The allegation emerged during a cross-examination from New Star's lawyer Daniel Oudkerk.
The evidence was used by New Star to make the case that Evershed had a history of using politicians and the press in order to further his own agenda.
It was clear that "the press was a tool you were not afraid to use", said Oudkerk.
Evershed himself has already claimed he is not a serial complainer.
During the cross-examination, Oudkerk also said former New Star manager Roger Dossett denies he was bullied while working at the firm.
Oudkerk said Dossett had also denied seeing Evershed being bullied.
Evershed has already claimed he became "extremely concerned" about John Duffield's bullying of Dossett in his witness statement.
The FSA declined to comment on the allegations.
Fallon was not immediately available for comment.
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