RBS names former FSA man as head of conduct Jon Pain, a former top director at the Financial Services Authority, will join the state-backed bank in August as head of conduct and regulatory affairs - a new position reporting directly into chief executive Stephen Hester. The position is similar to the one taken by Sir Hector Sants, the former FSA chief executive, at Barclays. Sir Hector joined as head of compliance to ensure the bank avoids involvement in future financial scandals, on an annual package reported to be worth up to £3m. RBS declined to disclose how much Mr Pain would be paid but said he would be on the executive committee, one level below the board, and responsible for "oversight of conduct and compliance globally across all RBS divisions as well as strategic leadership of the group's relationships with regulators." He earned £599,564 in his last full year at the FSA, in 2010. He faces a challenging task to help restore the reputation of an industry damaged by mis-selling and fraud. RBS was fined £390m for rigging the Libor inter-bank interest rate and has set aside about £3bn for payment protection insurance and interest rate swap mis-selling. Few banks have escaped untarnished by scandal in the past two years. Mr Hester said: "The creation of this position sends a clear message about how we want to do business - serving customers well, completing our return to a safe and conservative risk profile, and generating sustainable returns for shareholders. If we achieve these objectives, and do so in the right way, RBS will become a really good bank. Jon will be an excellent addition to the management team and I look forward to working with him when he takes up the position. Mr Pain will leave KPMG, which he joined in 2011 after three years at the FSA. He joined the FSA from Lloyds Banking Group in 2008 as head of the retail banking division following the failure of Northern Rock and was appointed interim chief executive in 2010 after Sir Hector announced his resignation. Sir Hector was subsequently persuaded to stay by the Chancellor to help the FSA's integration into the Bank of England, leading to Mr Pain's departure.