Committees approves Bailey, but will keep an eye on FCA
5 March 2020
The Treasury Committee has today published its report on the appointment of Andrew Bailey as Governor of the Bank of England.
Whilst it is satisfied that Mr Bailey has the professional competence and personal independence to be appointed, and therefore unanimously approves his appointment, the Committee has included the following paragraphs in its report:
(10) The above issues [as listed in paragraph 9 of the report] include a number of serious concerns about the culture and operations of the Financial Conduct Authority and the industry that it regulates. Dr Bailey has promised further evidence to this Committee in response to the issues raised above, which we will publish. This Committee will have further opportunities to consider these issues in the immediate future, including a forthcoming pre-appointment hearing with the new CEO of the Financial Conduct Authority, as well as regular hearings with its senior management. In the last Parliament our predecessor Committee published a report on the Perimeter of Regulation and we also propose to return to that, as well as the speed and transparency with which the FCA acts, later in this year. Our work will include assessing the effectiveness of the Government in implementing its responsibilities in relation to the remit and powers of the FCA. We will also assess progress in improving the culture of the finance industry since the reports of the Parliamentary Commission on Banking Standards.
(11) We are clear that there is a gap between public expectations and the current powers and performance of the FCA and clear in our duty to support the Government and the institution of the FCA in a process of improvement.
Commenting on the report, Rt Hon. Mel Stride MP, Chair of the Treasury Committee, said:
“The Treasury Committee has approved Andrew Bailey's appointment, but it has also raised a number of serious concerns regarding the performance of the FCA both before and during his time as its Chief Executive.
“Many of these concerns – specifically around culture, transparency and insufficient speed of action – will remain a key focus for the committee.
“The Committee is clear that it has an important role in improving the performance of the FCA. We will be holding a rigorous pre-appointment hearing with the new CEO to consider further the issues raised in yesterday's session.”
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