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Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, comments on the announcement that Andrew Bailey will be appointed as the next Chief Executive of the Financial Conduct Authority (FCA).
- Letter from Rt Hon. Andrew Tyrie MP to Rt Hon George Osborne MP on FCA Chief Executive appointment 26-01-16 (
PDF 37 KB) - Treasury Committee
Chairs comments
Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, said:
"Andrew Bailey has done a good job of creating the PRA out of the ashes of the FSA, whose shortcomings were so heavily exposed by the financial crisis of 2008. As the leader of one half of the UK’s ‘twin peaks’ regulatory system, Mr Bailey has extensive experience of implementing the recommendations of the Vickers and Parliamentary Banking Standards Commissions. There is more work to do on both. Mr Bailey will now have the tough job of protecting consumers and markets, and bolstering competition, in an increasingly complex financial services sector.
The FCA has been in difficulties, and on many fronts. It has a tough job ahead, and will require high quality leadership.
Allegations have been made that the FCA has been vulnerable to political pressure, influencing the way that it approaches the fulfilment of its statutory obligations. Whatever the substance of these allegations, and there may be none, the perception of them may remain.
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.
A similar arrangement is already in place for the OBR’s leadership. It provides a useful precedent. It has given the OBR demonstrable operational independence, and has contributed to its early success. It should be extended to the FCA and – following today’s news that there is now a further position to fill – to the PRA, too."
Further information
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