27 January, AtoZForex.com, Lagos – New developments have surfaced regarding the leadership of the Financial Conduct Authority (FCA). New members have been selected into the membership of the FCA board, but the most notable change is the appointment of Andrew Bailey as new FCA chief, although the Treasury Select Committee has suggested it be given a veto in future.
Three decades as a central banker
Having appointed Andrew Bailey as new FCA chief, the regulator brings a highly experienced candidate. As Mr. Baily has served in the Bank of England (BoE) for about 30 years, currently heading Prudential Regulation Authority. He will remain in this post till a successor is appointed. Bailey has a reputation of being solid, having overseen the introduction of tougher rules on capital for banks and insurers, new rules on banker remuneration and the introduction of concurrent stress testing for the major UK banks. He suits the position well as the last permanent chief executive, Martin Wheatley, was somewhat regarded a regulatory hardliner, the FCA has come under fire for taking a softer line on the City.
FCA leadership issues
Condemning allegations that the FCA has been vulnerable to political pressure, Treasury Committee chairman Andrew Tyrie said such allegations are wrong for the FCA office, irrespective of the basis. “It is partly the need to address these concerns, and to entrench the FCA’s independence, that has led the Committee to conclude that it requires a veto on both the appointment and the dismissal of the FCA’s senior leadership,” he said.
“Recent developments have shown that the most pressing issue in the system right now is the need for stable leadership at the FCA. Although it had not been my intention to leave the PRA during my term as CEO, a job that I enjoy enormously, it is a great honour to have been asked by the Chancellor to take on the job of FCA CEO.”
Bank of England Governor Mark Carney hailed Bailey, saying that “he has made the PRA a highly respected and effective regulator and built a team of exceptionally dedicated colleagues.”
Speaking about the current economic situation at the International Financial Services Forum in Dublin, Bailey stated that the post-crisis regulatory response has definitely birthed positive results as banks now have a stronger ability to absorb losses, also enabling a more vivid picture of the firms; liabilities.
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