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MPs vow to keep a ‘close eye’ on the FCA

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  • 06/03/2020
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MPs vow to keep a ‘close eye’ on the FCA
The Treasury Committee has pledged to closely monitor the Financial Conduct Authority (FCA), as outgoing chief executive Andrew Bailey prepares to become governor of the Bank of England.  

 

MPs approved Bailey (pictured) as chief of the UK’s central bank after grilling him earlier this week on his experience and track record at the FCA.

In a report based on Bailey’s appearance before the committee, MPs raised issues which include “serious concerns” about the culture and operations of the watchdog and the financial industry.

The committee said there is a “gap between public expectations and the current powers and performance of the FCA”.

Some of the issues raised by the committee include the FCA’s reaction and handling of the collapse of Lendy, Woodford funds and the HBOS Reading fraud.

Reports of complaints of bullying and harassment at the regulator and staff wellbeing were also among the topics put to Bailey.

He has promised further evidence in response to some of the issues, which will be published by the committee.

Following Bailey’s appearance before the committee, it was concluded that he “has the professional competence and personal independence to be appointed as governor of the Bank of England”.

Mel Stride, 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 CEO.

“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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