Influential Treasury Select Committee slams FCA culture but backs Bailey as next Bank governor
Parliament’s influential Treasury Select Committee (TSC) today unanimously backed Andrew Bailey in his new role at the Bank of England, but took the opportunity to criticise failings in his post at the City’s watchdog.
The TSC pointed to recent conduct issues such as the London Capital & Finance mini-bond and Woodfood investment scandals, which occurred under Bailey’s watch at the Financial Conduct Authority (FCA), as examples where there was “a gap between public expectations and the current powers and performance” of the watchdog.
TSC chair Mel Stride 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 said it will continue to monitor the issued raised about the FCA, “including a forthcoming pre-appointment hearing with the new [chief executive]… as well as regular hearings with its senior management”.
Despite those failings the panel said it was “satisfied that Bailey has the professional competence and personal independence to be appointed” to the role he inherits from Mark Carney this month.
Bailey faced a grilling from the panel earlier this week, and backed his record at the FCA.
A changed organisation?
He told politicians he was “proud of what we’ve achieved” but “not proud of some things that happened” during his time at the financial regulator.
Bailey said: “I think I can honestly say the FCA is a changed organisation. And we have done a lot during my time.”
Although Bailey faced questions from the TSC, the committee does not hold a veto against his appointment to the top role at Threadneedle Street.