Financial Conduct Authority: Difference between revisions
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{{short description|British regulator}} |
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{{EngvarB|date=February 2020}} |
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{{short description|British central banker|bot=PearBOT 5}} |
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{{Infobox |
{{Infobox Officeholder |
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| honorific-prefix = |
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| agency_name = Financial Conduct Authority |
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| name = Andrew Bailey |
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| nativename_r = |
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| honorific-suffix = |
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| logo = Financial Conduct Authority.png |
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| image = File:Andrew Bailey.jpg |
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| logo_width = 225px |
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| caption = Bailey in 2016 |
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| logo_caption = |
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| office = [[Governor of the Bank of England]] |
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| seal = |
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| appointed = [[Sajid Javid]] |
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| seal_width = |
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| term_start = 16 March 2020 |
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| seal_caption = |
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| term_end = |
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| formed = 1 April 2013 |
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| predecessor = [[Mark Carney]] |
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| preceding1 = [[Financial Services Authority]] |
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| successor = |
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| office1 = [[Financial Conduct Authority|Chief Executive of the Financial Conduct Authority]] |
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| superseding = |
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| term_start1 = 1 July 2016 |
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| jurisdiction = [[United Kingdom]] |
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| term_end1 = 15 March 2020 |
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| headquarters = [[12 Endeavour Square]]<br />[[London]] |
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| predecessor1 = [[Tracey McDermott]] |
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| employees = |
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| successor1 = [[Nikhil Rathi]] |
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| budget = £632.6m (2019/2020)<ref>{{cite web |url= https://www.fca.org.uk/annual-report-and-accounts-2019-20 |title= Annual Accounts and Reports 2019/2020 |publisher=FCA |access-date= December 29, 2020}}</ref> |
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| office2 = [[Deputy Governor of the Bank of England#With specific responsibility|Deputy Governor of the Bank of England for Prudential Regulation]] |
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| minister1_name = |
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| governor2 = [[Mark Carney]] |
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| minister1_pfo = |
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| term_start2 = 1 April 2013 |
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| minister2_name = |
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| term_end2 = 1 July 2016 |
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| minister2_pfo = |
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| predecessor2 = Office Created |
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| chief1_name = |
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| successor2 = [[Sam Woods (civil servant)|Sam Woods]] |
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| chief1_position = |
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| office3 = [[Chief Cashier of the Bank of England]] |
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| chief2_name = [[Nikhil Rathi]]<br>(Chief Executive) |
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| governor3 = [[Mervyn King (economist)|Mervyn King]] |
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| chief2_position = |
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| term_start3 = 1 January 2004 |
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| chief3_name = |
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| term_end3 = 1 April 2011 |
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| chief3_position = |
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| predecessor3 = [[Merlyn Lowther]] |
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| chief4_name = |
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| successor3 = [[Chris Salmon]] |
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| chief4_position = |
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| birth_date = {{birth date and age|df=y|1959|3|30}} |
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| chief5_name = |
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| birth_place = [[Leicester]], [[England]] |
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| chief5_position = |
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| spouse = [[Cheryl Schonhardt-Bailey]] |
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| chief6_name = |
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| children = Hannah Bailey |
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| chief6_position = |
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Samuel Bailey |
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| chief7_name = |
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| alma_mater = [[Queens' College, Cambridge]] |
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| chief7_position = |
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| occupation = [[Central bank]]er |
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| chief8_name = |
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| website = |
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| chief8_position = |
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|otherparty=None}} |
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| chief9_name = |
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| chief9_position = |
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| parent_department = |
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| parent_agency = |
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| child1_agency = |
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| keydocument1 = |
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| keydocument2 = |
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| website = {{url|https://www.fca.org.uk/}} |
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| footnotes = |
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}}The '''Financial Conduct Authority''' ('''FCA''') is a [[financial regulation|financial regulatory]] body in the [[United Kingdom]], but operates independently of the UK Government, and is financed by charging fees to members of the financial services industry.<ref name="hm-treasury">{{Cite web | title =First Chair of the new Financial Conduct Authority appointed| url = http://www.hm-treasury.gov.uk/press_43_12.htm | access-date = 2 November 2012 }}</ref> The FCA regulates financial firms providing services to consumers and maintains the integrity of the financial markets in the United Kingdom.<ref name="vina">{{cite news|url=http://www.businessweek.com/news/2010-06-16/u-k-scraps-fsa-in-biggest-bank-regulation-overhaul-since-1997.html|title=U.K. Scraps FSA in Biggest Bank Regulation Overhaul Since 1997|last=Vina|first=Gonzalo|work=Businessweek|publisher=Bloomberg|access-date=16 June 2010}}</ref> |
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'''Andrew John Bailey''' (born 30 March 1959) is a British [[central bank]]er who has been [[Governor of the Bank of England]] since 16 March 2020. |
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It focuses on the regulation of conduct by both retail and wholesale financial services firms.<ref name="treasury1">{{cite web|url=http://www.hm-treasury.gov.uk/reform_and_regulation.htm|title=Reform and regulation|date=17 June 2010|publisher=HM Treasury|access-date=17 June 2010}} [http://nationalarchives.gov.uk-webarchive.info/-/www.hm-treasury.gov.uk/reform_and_regulation.htm Archived here.]</ref> Like its predecessor the [[Financial Services Authority|FSA]], the FCA is structured as a [[company limited by guarantee]].<ref>Goldsworth, J., ''Lexicon of Trust & Foundation Practice'' ([[Wendens Ambo]]: Mulberry House Press, 2016), [https://books.google.com/books?id=yf6-CwAAQBAJ&pg=PA140 p. 140].</ref>{{rp|140}} |
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Previously he served as the [[Chief Cashier of the Bank of England]] from January 2004 until April 2011, [[Deputy Governor of the Bank of England]] from April 2013 to July 2016, and Chief Executive of the [[Financial Conduct Authority]] from 2016 to 2020.<ref>{{Cite web|url=http://www.bankofengland.co.uk/about/people/andrew-bailey/biography|title=Andrew Bailey|website=www.bankofengland.co.uk|language=en|access-date=2020-03-16}}</ref> |
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The FCA works alongside the [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]] and the [[Financial Policy Committee]] to set regulatory requirements for the financial sector. The FCA is responsible for the conduct of around 58,000 businesses which employ 2.2 million people and contribute around £65.6 billion in annual tax revenue to the economy in the United Kingdom.<ref name="vina" /> |
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== |
==Education== |
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On 19 December 2012, the [[Financial Services Act 2012]] received [[royal assent]], and it came into force on 1 April 2013. The Act created a new regulatory framework for financial services and abolished the Financial Services Authority.<ref name= treasury>{{cite web |url=http://www.hm-treasury.gov.uk/press_126_12.htm |title=Financial Services Bill receives Royal Assent |date=19 December 2012 |publisher=[[HM Treasury]] |access-date=4 January 2013}}</ref> |
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Bailey attended [[Wyggeston Grammar School for Boys|Wyggeston Boys' Grammar School]], Leicester from where he went to [[Queens' College, Cambridge]], where he gained a [[Bachelor of Arts|BA]] in History and a PhD from the [[Faculty of History, University of Cambridge]] in 1984 with a thesis on ''The impact of the Napoleonic Wars on the development of the cotton industry in Lancashire: a study of the structure and behaviour of firms during the Industrial Revolution''.<ref>{{cite web |title=The impact of the Napoleonic Wars on the development of the cotton industry in Lancashire: a study of the structure and behaviour of firms during the Industrial Revolution |url=https://idiscover.lib.cam.ac.uk/permalink/f/16u99e0/44CAM_ALMA21428196350003606 |website=Cambridge University Library |access-date=23 December 2019}}</ref><ref>[https://www.bankofengland.co.uk/-/media/boe/files/about/people/andrew-bailey/cv.pdf "Andrew Bailey CV"], ''www.bankofengland.co.uk''. Retrieved 17 March 2021.</ref> |
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Specifically, the Act gave the [[Bank of England]] responsibility for financial stability, bringing together macro and micro prudential regulation, created a new regulatory structure consisting of the Bank of England's Financial Policy Committee, the [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]] and the Financial Conduct Authority.<ref name= treasury/> |
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After university, Bailey became a research officer at the [[London School of Economics]], before joining the [[Bank of England]] in 1985. |
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In March 2020, the FCA introduced new [[strong customer authentication]] rules<ref>{{Cite web|date=2019-09-02|title=Strong Customer Authentication|url=https://www.fca.org.uk/firms/strong-customer-authentication|access-date=2020-06-23|website=FCA|language=en}}</ref> aiming to reduce fraud and improve security for customers by requiring European banks to offer customers three layers of authentication when customers make online payments over €30 in Europe: |
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He has worked at the Bank of England in a number of areas, most recently as executive director for banking services and as Chief Cashier, as well as head of the bank's Special Resolution Unit (SRU). Previous roles include Governor's private secretary, and head of the International Economic Analysis Division in Monetary Analysis. |
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* PIN code or a password |
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* [[Biometrics]] such as a fingerprint |
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* Physical device such as a phone |
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Since the onset of the financial crisis in August 2007 and until April 2011, Bailey was responsible for the bank's special operations to resolve problems in the banking sector, and in 2009 was chairman and chief executive of Dunfermline Building Society Bridge Bank Ltd. |
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==Powers== |
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The authority has significant powers, including the power to regulate conduct related to the marketing of financial products. It is able to specify minimum standards and to place requirements on products.<ref name="FT-What&Who">{{cite news|title=The Financial Conduct Authority: What it Does and Who is Charge|url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8874588/The-Financial-Conduct-Authority-what-it-does-and-who-is-charge.html|access-date=20 August 2012|newspaper=[[Financial Times]]|date=8 November 2011|location=London}}</ref> It has the power to investigate organisations and individuals.<ref>{{cite web|url=http://www.fca.org.uk/consumers/financial-services-products/investments/news-and-investigations|title=News and investigations|work=fca.org.uk|access-date=6 June 2015}}</ref> In addition, the FCA is able to ban financial products for up to a year while considering an indefinite ban; it has the power to instruct firms to immediately retract or modify promotions which it finds to be misleading and to publish such decisions.<ref>Bond, R., [https://www.lexology.com/library/detail.aspx?g=dea011e4-dde0-41e4-a18a-78f52199a8c5 "e-Commerce in United Kingdom"], Lexology, August 15, 2019.</ref> |
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On 1 April 2013 Bailey became the chief executive of the new [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]]<ref name="bankofengland1">[http://www.bankofengland.co.uk/about/people/biographies/bailey.htm About the Bank | People | Andrew Bailey – Executive Director and Head of the Prudential Business Unit] {{Webarchive|url=https://web.archive.org/web/20170210201814/http://www.bankofengland.co.uk/about/people/biographies/bailey.htm/ |date=10 February 2017 }}. Bank of England. Retrieved 28 April 2012.</ref> and the first deputy governor of the Bank of England for Prudential Regulation. |
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On 26 January 2016, it was announced that Andrew Bailey would take over as CEO of the UK [[Financial Conduct Authority]].<ref>{{Cite web|url=https://www.bbc.com/news/business-35408302|title=Andrew Bailey is new City watchdog boss|date=26 January 2016|publisher=BBC}}</ref> He replaced [[Tracey McDermott]], who became acting CEO after [[Martin Wheatley]] resigned following a vote of no confidence by [[George Osborne]] in July 2015.<ref>{{Cite news|url=https://www.theguardian.com/business/2015/jul/17/city-watchdog-chief-quits-fca-george-osborne|title=City watchdog chief quits after George Osborne vote of no confidence|last=Inman|first=Phillip|date=17 July 2015|newspaper=The Guardian|access-date=14 February 2017|issn=0261-3077}}</ref> |
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Further, the FCA is able to freeze assets of individuals or organisations under investigation whether or not they are innocent or guilty.<ref>{{cite web |url=https://www.handbook.fca.org.uk/handbook/EG/10/3.html?date=2016-06-01|title=News and investigations|work=fca.org.uk|access-date=27 February 2019}}</ref><ref>Chitimira, H., ''Market Abuse Regulation in South Africa, the United States of America and the United Kingdom'' ([[Wilmington, Delaware|Wilmington, DE]]: Vernon Press, 2018), [https://books.google.com/books?id=cbiEDwAAQBAJ&pg=PA143 p. 143].</ref>{{rp|143}} The authority has been responsible for regulating the consumer credit industry since 1 April 2014, taking over the role from the [[Office of Fair Trading]].<ref>{{cite web |url=http://www.oft.gov.uk/about-the-oft/work-and-responsibilities/#.UzSb7vmrGD8 |title=OFT’s work and responsibilities after 31 March 2014 |year=2014 |publisher=Office of Fair Trading |access-date=27 March 2014}} [http://nationalarchives.gov.uk-webarchive.info/-/www.oft.gov.uk/about-the-oft/work-and-responsibilities/#.UzSb7vmrGD8 Archived here.]</ref> |
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In March 2020 the Treasury select committee criticised the performance of the Financial Conduct Authority. The committee said it would monitor closely the culture, operations and transparency of the FCA. This followed damning criticisms of the watchdog by consumer and industry groups during Bailey’s tenure as its chief executive.<ref>{{Cite web|url=https://www.theguardian.com/business/2020/mar/05/concerns-raised-over-new-bank-of-england-governors-time-at-fco|title=Concerns raised over new Bank of England governor's time at FCA|first=Phillip|last=Inman|date=5 March 2020|via=www.theguardian.com}}</ref> |
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==Payment Systems Regulator== |
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In April 2015, the FCA created a separate body, the Payment Systems Regulator (PSR), in accordance with section 40 of the Financial Services (Banking Reform) Act 2013.<ref>[http://www.legislation.gov.uk/ukpga/2013/33/section/40/enacted Financial Services (Banking Reform) Act 2013], accessed 13 May 2016</ref> The PSR's role is "to promote competition and innovation in payment systems, and ensure they work in the interests of the organisations and people that use them".<ref>[https://www.psr.org.uk/sites/default/files/media/PDF/MR1512-indirect-access-market-review-interim-report.pdf Market Review into the Supply of Indirect Access to Payment Systems, MR 15/1.2, March 2015], accessed 13 May 2016</ref> |
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On 3 June 2019, it was reported in ''[[The Times]]'' that Bailey was the favourite to replace [[Mark Carney]] as the new [[Governor of the Bank of England]].<ref>{{Cite news|url=https://www.thetimes.co.uk/article/the-week-ahead-67jtm7zbv|title=The week ahead|last=Costello|first=Miles|date=3 June 2019|work=The Times|access-date=3 June 2019|issn=0140-0460}} <!-- It was duly announced by Sajid Javid on 20 December 2019 that Andrew Bailey was the new appointee as Governor of the Bank of England. (is this a quote?) --></ref> [[Sajid Javid]] had also intervened in support of Bailey.<ref>{{Cite news |url=https://www.standard.co.uk/business/revealed-sajid-javid-scored-victory-over-rival-dominic-cummings-when-it-came-to-appointing-new-bank-a4354451.html|title=Revealed: Sajid Javid scored victory over rival Dominic Cummings when it came to appointing new Bank of England Governor|date=5 February 2020|work=London Evening Standard |access-date=9 February 2020}}</ref><ref>{{cite web|url=https://www.theguardian.com/business/2019/dec/20/andrew-bailey-appointed-head-of-bank-of-england|title=Andrew Bailey appointed head of Bank of England|website=The Guardian|date=20 December 2019|access-date=2 April 2020|last=Partington|first=Richard|quote=Javid is understood to have decided on Bailey.}}</ref> According to ''[[The Economist]]'', "He is widely seen within the bank as a safe pair of hands, an experienced technocrat who knows how to manage an organisation."<ref name=“veconomist” >{{cite news|title= Andrew Bailey takes over as governor of the Bank of England|url= https://www.economist.com/britain/2020/03/15/andrew-bailey-takes-over-as-governor-of-the-bank-of-england|work=[[The Economist]]|date=15 March 2020}}</ref> |
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On 20 June 2017, the PSR announced its final decision regarding reforms to the infrastructure of the payment systems in the United Kingdom in order to encourage "better and more innovative services for customers".<ref>{{Cite web|url=https://www.psr.org.uk/psr-publications/market-reviews/Infrastructure-market-review-remedies-decision|title=MR 15/2.5 Market review into the ownership and competitiveness of infrastructure provision: remedies decision|website=www.psr.org.uk|language=en|access-date=2017-07-05}}</ref> The regulator's review from December 2016 found that the central infrastructure for the main retail payment systems in the United Kingdom – [[BACS|Bacs]], [[Faster Payments Service|Faster Payments]] (FPS) and [[LINK (UK)|LINK]] – do not offer effective competition. Two main changes are required: |
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* To undertake a competitive procurement process for future central infrastructure contracts. With this, the PSR hopes to ensure fair, open and transparent procurement of the central payment systems infrastructure and enable new technology providers to enter the market. |
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* To adopt a common international messaging standard (ISO 20022) for Bacs and Faster Payments. This change aims to lower barriers and encourage new entrants to the market. |
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His term will expire on 15 March 2028. |
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==Sectors and firms== |
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==References== |
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The Financial Services Act of 2012 set out a new system for regulating financial services in order to protect and improve the UK's economy.<ref>{{Cite web|url=https://www.fca.org.uk/firms/banks-building-societies-credit-unions|title=Banks, building societies and credit unions|date=April 27, 2016|website=FCA|access-date=October 20, 2019}}</ref> |
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{{reflist}} |
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The FCA will supervise banks to: |
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* Ensure they treat customers fairly |
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* Encourage innovation and healthy competition |
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* Help the FCA to identify potential risks early so they can take action to reduce the risks |
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==External links== |
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=== Mutual societies === |
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* [http://www.fsa.gov.uk/pages/About/Who/Management/Retail/bailey.shtml Profile at the FSA] |
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There are more than 10,000 [[Mutual Society|mutual societies]] in the United Kingdom.<ref>McLaughlin, S., ''Unlocking Company Law'' ([[Abingdon-on-Thames]]: [[Routledge]], 2015), [https://books.google.com/books?id=IhfwBgAAQBAJ&pg=PT112 p. 64].</ref>{{rp|64}} The FCA are responsible for:<ref>{{Cite web|url=https://www.fca.org.uk/firms/mutual-societies|title=Mutual societies|date=April 28, 2016|website=FCA|access-date=October 20, 2019}}</ref> |
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* [http://company-director-check.co.uk/director/909510975 Profile at Director Check] |
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* Registering new mutual societies |
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* Keeping public records |
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{{s-start}} |
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* Receiving annual returns |
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{{s-gov}} |
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{{s-bef|before=[[Mark Carney]]}} |
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{{s-ttl|title=[[Governor of the Bank of England]]|years=2020–present}} |
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{{s-inc}} |
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{{s-end}} |
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{{Governors of the Bank of England}} |
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=== Financial advisers === |
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Rules came into force in 2012 for [[independent financial advisers]] (IFAs) following the [[Retail Distribution Review]] (RDR) rules.<ref>{{Cite web|url=https://www.fca.org.uk/firms/financial-advisers|title=Financial advisers|date=April 28, 2016|website=FCA|access-date=October 20, 2019}}</ref> To be classed as an IFA, businesses need to: |
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* Offer a broad range of retail investment products |
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* Give consumers unbiased and unrestricted advice based on comprehensive and fair market analysis |
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==Leadership== |
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=== Chief executive === |
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In February 2011, it was confirmed that the new head of the FCA would be [[Martin Wheatley]], formerly chairman of Hong Kong's [[Securities and Futures Commission]].<ref name="FT-What&Who" /><ref name="FSA-Bckgrnd">{{cite web|title=Regulatory Reform|url=http://www.fsa.gov.uk/about/what/reg_reform/background|work=FSA web site|publisher=FSA|access-date=20 August 2012}}</ref><ref name="FT-Weatly to head">{{cite news|url=http://www.ft.com/cms/s/0/c3a14ee0-2eba-11e0-9877-00144feabdc0.html#axzz1Co2YN68v|newspaper=The Financial Times|date=2011-02-02|access-date=2010-02-02|title=Wheatley to head new UK consumer regulator}}</ref><ref name="HMTres-Chair">{{cite web|title=First Chair of the new Financial Conduct Authority appointed|url=http://www.hm-treasury.gov.uk/press_43_12.htm|work=Newsroom & Speeches|publisher=HM Treasury|date=11 June 2012 |access-date=20 August 2012}}</ref> However, Wheatley's appointment was not put in front of the [[Treasury Select Committee]] for a pre-appointment hearing. Instead, the Government stated it would put Wheatley and future chief executives forward for a pre-commencement hearing, i.e. after they had been formally appointed but before they began the role.<ref>{{Cite web|title=House of Commons - The Treasury Committee’s scrutiny of appointments - Treasury Committee|url=https://publications.parliament.uk/pa/cm201516/cmselect/cmtreasy/811/81104.htm|access-date=2020-06-22|website=publications.parliament.uk}}</ref> |
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In July 2015, Wheatley resigned his post at the FCA following a vote of no confidence by [[George Osborne]].<ref>{{Cite news|url=https://www.theguardian.com/business/2015/jul/17/city-watchdog-chief-quits-fca-george-osborne|title=City watchdog chief quits after George Osborne vote of no confidence|publisher=The Guardian|author=Phillip Inman|date=17 July 2015|access-date=31 December 2015}}</ref> In September 2015, [[Tracey McDermott]] took over from Wheatley as acting chief executive.<ref>{{Cite web |url=https://www.fca.org.uk/news/statements/statement-financial-advice-market-review |title=Statement on the Financial Advice Market Review |date=2015-08-03 |access-date=2019-12-16 }}</ref> |
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[[Andrew Bailey (banker)|Andrew Bailey]] was appointed chief executive on 26 January 2016.<ref>{{cite web | author=Anon. | url=https://www.bankofengland.co.uk/news/2016/january/andrew-bailey-appointed-ceo-of-the-fca | title=Andrew Bailey appointed CEO of the Financial Conduct Authority | publisher=[[Bank of England]] | date=26 January 2016}}</ref> After Bailey moved to become the [[Governor of the Bank of England]], it was announced that [[Christopher Woolard]] would become the Interim Chief Executive. In June 2020, it was announced that woolard would be succeeded on a permanent basis by [[Nikhil Rathi]].<ref>{{Cite news|last=correspondent|first=Kalyeena Makortoff Banking|date=2020-06-22|title=FCA appoints London Stock Exchange executive Nikhil Rathi as CEO|language=en-GB|work=The Guardian|url=https://www.theguardian.com/business/2020/jun/22/fca-appoints-london-stock-exchange-boss-nikhil-rathi-as-ceo|access-date=2020-06-22|issn=0261-3077}}</ref> |
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=== List of chief executives === |
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{| class="wikitable" |
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|+ |
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!# |
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!Name |
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!Tenure |
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|- |
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|1 |
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|[[Martin Wheatley]] |
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|2013–2015 |
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|- |
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| - |
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|[[Tracey McDermott]] (''interim'') |
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|2015–2016 |
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|- |
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|2 |
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|[[Andrew Bailey (banker)|Andrew Bailey]] |
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|2016–2020 |
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|- |
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| - |
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|Christopher Woolard (''interim'') |
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|2020 |
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|- |
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|3 |
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|[[Nikhil Rathi]] |
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|2020– |
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|} |
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=== Chairperson === |
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In June 2012, it was confirmed that [[John Griffith-Jones]] would become the non executive chair of the FCA once the FSA ceases operations in 2013.<ref name="HMTres-Chair" /><ref name="Tel-Jones" /><ref name="FT-Jones">{{cite news|last=Masters|first=Brooke|title=KPMG’s UK boss to chair new watchdog|url=http://www.ft.com/intl/cms/s/0/b665b832-b3e9-11e1-a3db-00144feabdc0.html#axzz240e8Fw4C|access-date=20 August 2012|newspaper=[[Financial Times]]|date=11 June 2012}}</ref> Griffith-Jones joined the FSA board in September 2012, as a non executive director and deputy chair.<ref name="Tel-Jones">{{cite news|title=KPMG UK chairman John Griffith-Jones to head Financial Conduct Authority|url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9323742/KPMG-UK-chairman-John-Griffith-Jones-to-head-Financial-Conduct-Authority.html|access-date=20 August 2012|newspaper=The Telegraph|date=11 June 2012|location=London}}</ref><ref name="FT-Jones" /> |
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==Criticism== |
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In June 2013, the Financial Conduct Authority was criticised by the [[Banking Standards Board|Parliamentary Commission on Banking Standards]] in their report "Changing Banking for Good", which stated: |
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{{quote |text=The interest rate swap scandal has cost small businesses dear. Many had no concept of the instrument they were being pressured to buy. This applies to embedded swaps as much as standalone products. The response by the FSA and FCA has been inadequate. If, as they claim, the regulators do not have the power to deal with these abuses, then it is for the Government and Parliament to ensure that the regulators have the powers they need to enable restitution to be made for this egregious mis-selling. |sign="Changing banking for good: Report of the Parliamentary Commission on Banking Standards" |source=[[House of Lords]], [[House of Commons]]<ref>{{cite web|url=https://publications.parliament.uk/pa/jt201314/jtselect/jtpcbs/27/2704.htm|title=Changing banking for good: Report of the Parliamentary Commission on Banking Standards|work=parliament.uk|access-date=6 June 2015}}</ref>}} |
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The FCA was rebuked by the Treasury Select Committee for lack of concern over the increase in mortgage interest rates of the [[Bank of Ireland]]'s subsidiary of the United Kingdom.<ref>{{cite web|url=http://www.parliament.uk/business/committees/committees-a-z/commons-select/treasury-committee/news/martin-wheatley-boi-letter/|title=Correspondence published with FSA on Bank of Ireland|work=UK Parliament|access-date=6 June 2015}}</ref><ref>{{cite web|url=http://www.scotsman.com/the-scotsman/business/rebuke-for-new-fca-boss-ahead-of-launch-day-1-2864143|title=Rebuke for new FCA boss ahead of launch day|work=scotsman.com|access-date=6 June 2015}}</ref> |
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There had been calls for the resignation of chairman John Griffith-Jones because of his responsibility for auditing HBOS as chairman of KPMG at the time of the [[financial crisis of 2007–08]].<ref>{{cite news| url=https://www.theguardian.com/business/2013/apr/10/hbos-heat-on-city-regulator-fca | location=London | work=The Guardian | first=Simon | last=Bowers | title=HBOS heat turns on head of new City regulator John Griffith-Jones | date=10 April 2013}}</ref> There has also been criticism of Chief Executive [[Martin Wheatley]] because of his responsibility for the minibond fiasco in Hong Kong. There were not the customary pre-appointment hearings for either John Griffith-Jones or Martin Wheatley, so that people could not disapprove of these appointments by submitting evidence to such hearings.<ref>Wynn, S., [https://www.whatdotheyknow.com/request/why_no_pre_appointment_hearings?utm_campaign=alaveteli-experiments-87&utm_content=sidebar_similar_requests&utm_medium=link&utm_source=whatdotheyknow "Why no pre-appointment hearings for John Griffith-Jones and Martin Wheatley?"], [[WhatDoTheyKnow]], December 2, 2013.</ref> |
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On 10 December 2014, the FCA released a report from Simon Davis from [[Clifford Chance|Clifford Chance LLP]] inquiring into the events of 27/28 March 2014 relating to the press briefing of information in the FCA's 2014/15 Business Plan. |
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The report recommended: |
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* That there be substantial improvement in the procedures relating to the identification, control and release of price-sensitive information, |
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* That the final version of the FCA's Business Plan should only be made available publicly to all market participants at the same time, |
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* That the relevant review team address the issue of price-sensitive information in any assessment of a potential thematic review, and |
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* That the FCA urgently put in place price and volume monitoring procedures, combined with an action plan for the effective management of the FCA's reaction to any issues involving the uncontrolled release of price-sensitive information originating from or involving the FCA. |
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On 16 December 2014, the Treasury select committee commenced taking evidence on the press briefing. Shortly thereafter, committee chair Andrew Tyrie said it looked as if the FCA had been guilty of an “extraordinary blunder” and had created a “disorderly market” through its actions.<ref>Inman, P., [https://www.theguardian.com/business/2014/dec/16/fca-clive-adamson-quit-insurance "Financial Conduct Authority director quit over insurance review fallout"], ''[[The Guardian]]'', December 16, 2014.</ref> |
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In 2017, the FCA was criticised by MP [[Chris Philp]], who sat on the [[Treasury Select Committee]], for spending £66,000 on a new logo that was hardly different from their previous logo.<ref>{{cite web|url=https://www.designweek.co.uk/issues/8-14-may-2017/financial-conduct-authority-looks-streamline-simplify-brand-refresh/|title=Financial Conduct Authority looks to streamline and simplify with rebrand|date=10 May 2017|first=Aimée|last=McLaughlin|website=[[Design Week]]|access-date=29 February 2020}}</ref> |
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==See also== |
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{{Portal|Banks}} |
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* [[FCA Controlled Functions]] |
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* [[Financial Policy Committee]] |
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* [[Financial Services Authority]] |
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* [[Prudential Regulation Authority (United Kingdom)|Prudential Regulation Authority]] |
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* [[Fraud Advisory Panel]] |
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==References== |
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{{reflist}} |
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==External links== |
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* {{official website|https://www.fca.org.uk/|FCA official website}} |
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{{Authority control}} |
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Revision as of 19:00, 23 April 2021
Andrew Bailey | |
|---|---|
 Bailey in 2016 | |
| Governor of the Bank of England | |
| Assumed office 16 March 2020 | |
| Appointed by | Sajid Javid |
| Preceded by | Mark Carney |
| Chief Executive of the Financial Conduct Authority | |
| In office 1 July 2016 – 15 March 2020 | |
| Preceded by | Tracey McDermott |
| Succeeded by | Nikhil Rathi |
| Deputy Governor of the Bank of England for Prudential Regulation | |
| In office 1 April 2013 – 1 July 2016 | |
| Governor | Mark Carney |
| Preceded by | Office Created |
| Succeeded by | Sam Woods |
| Chief Cashier of the Bank of England | |
| In office 1 January 2004 – 1 April 2011 | |
| Governor | Mervyn King |
| Preceded by | Merlyn Lowther |
| Succeeded by | Chris Salmon |
| Personal details | |
| Born | 30 March 1959 Leicester, England |
| Other political affiliations | None |
| Spouse | Cheryl Schonhardt-Bailey |
| Children | Hannah Bailey Samuel Bailey |
| Alma mater | Queens' College, Cambridge |
| Occupation | Central banker |
Andrew John Bailey (born 30 March 1959) is a British central banker who has been Governor of the Bank of England since 16 March 2020.
Previously he served as the Chief Cashier of the Bank of England from January 2004 until April 2011, Deputy Governor of the Bank of England from April 2013 to July 2016, and Chief Executive of the Financial Conduct Authority from 2016 to 2020.[1]
Education
Bailey attended Wyggeston Boys' Grammar School, Leicester from where he went to Queens' College, Cambridge, where he gained a BA in History and a PhD from the Faculty of History, University of Cambridge in 1984 with a thesis on The impact of the Napoleonic Wars on the development of the cotton industry in Lancashire: a study of the structure and behaviour of firms during the Industrial Revolution.[2][3]
After university, Bailey became a research officer at the London School of Economics, before joining the Bank of England in 1985.
He has worked at the Bank of England in a number of areas, most recently as executive director for banking services and as Chief Cashier, as well as head of the bank's Special Resolution Unit (SRU). Previous roles include Governor's private secretary, and head of the International Economic Analysis Division in Monetary Analysis.
Since the onset of the financial crisis in August 2007 and until April 2011, Bailey was responsible for the bank's special operations to resolve problems in the banking sector, and in 2009 was chairman and chief executive of Dunfermline Building Society Bridge Bank Ltd.
On 1 April 2013 Bailey became the chief executive of the new Prudential Regulation Authority[4] and the first deputy governor of the Bank of England for Prudential Regulation.
On 26 January 2016, it was announced that Andrew Bailey would take over as CEO of the UK Financial Conduct Authority.[5] He replaced Tracey McDermott, who became acting CEO after Martin Wheatley resigned following a vote of no confidence by George Osborne in July 2015.[6]
In March 2020 the Treasury select committee criticised the performance of the Financial Conduct Authority. The committee said it would monitor closely the culture, operations and transparency of the FCA. This followed damning criticisms of the watchdog by consumer and industry groups during Bailey’s tenure as its chief executive.[7]
On 3 June 2019, it was reported in The Times that Bailey was the favourite to replace Mark Carney as the new Governor of the Bank of England.[8] Sajid Javid had also intervened in support of Bailey.[9][10] According to The Economist, "He is widely seen within the bank as a safe pair of hands, an experienced technocrat who knows how to manage an organisation."[11]
His term will expire on 15 March 2028.
References
- ^ "Andrew Bailey". www.bankofengland.co.uk. Retrieved 16 March 2020.
- ^ "The impact of the Napoleonic Wars on the development of the cotton industry in Lancashire: a study of the structure and behaviour of firms during the Industrial Revolution". Cambridge University Library. Retrieved 23 December 2019.
- ^ "Andrew Bailey CV", www.bankofengland.co.uk. Retrieved 17 March 2021.
- ^ About the Bank | People | Andrew Bailey – Executive Director and Head of the Prudential Business Unit Archived 10 February 2017 at the Wayback Machine. Bank of England. Retrieved 28 April 2012.
- ^ "Andrew Bailey is new City watchdog boss". BBC. 26 January 2016.
- ^ Inman, Phillip (17 July 2015). "City watchdog chief quits after George Osborne vote of no confidence". The Guardian. ISSN 0261-3077. Retrieved 14 February 2017.
- ^ Inman, Phillip (5 March 2020). "Concerns raised over new Bank of England governor's time at FCA" – via www.theguardian.com.
- ^ Costello, Miles (3 June 2019). "The week ahead". The Times. ISSN 0140-0460. Retrieved 3 June 2019.
- ^ "Revealed: Sajid Javid scored victory over rival Dominic Cummings when it came to appointing new Bank of England Governor". London Evening Standard. 5 February 2020. Retrieved 9 February 2020.
- ^ Partington, Richard (20 December 2019). "Andrew Bailey appointed head of Bank of England". The Guardian. Retrieved 2 April 2020.
Javid is understood to have decided on Bailey.
- ^ "Andrew Bailey takes over as governor of the Bank of England". The Economist. 15 March 2020.
External links
| International | |
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| National | |
Categories:
- 1959 births
- Alumni of Queens' College, Cambridge
- Alumni of the University of Cambridge
- Governors of the Bank of England
- Chief Cashiers of the Bank of England
- Deputy Governors of the Bank of England
- Financial Conduct Authority people
- Living people
- People associated with the Bank of England
- People educated at Wyggeston Grammar School for Boys