FCA confirms £3.2m software write-off

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The FCA has confirmed it has had to write off £3.2m in a “constructive loss” resulting from software licences it purchased.

Last year it was revealed how the regulator entered a one-year contract to purchase several software licences in which it made a prepayment in order to receive a discount.

In the regulator’s annual report, published today, it confirms that it had tried and failed to sell-on some of the licences to recoup some of the losses.

It says: “The FCA capitalised the remaining balance of £0.7m as an intangible asset, since at the time it believed it could realise value from on-selling some of the licences.

“This did not turn out to be the case and the assets have now been fully impaired in the year to 31 March 2016. The contract expired in May 2015 and has not been renewed.”

The report also reveals ex-chief executive Martin Wheatley is to receive £827,000 in his final months at the regulator.

He stepped down in September 2015 but is continuing to work until the end of July this year.