The Treasury Committee has published a report announcing it is ‘satisfied’ with the appointment of Andrew Bailey as Governor of the Bank of England, but added that it would ‘keep an eye’ on the FCA.

While the Committee suggested it is satisfied Bailey has the professional competence and personal independence to be appointed, it also highlighted a number of ‘serious concerns' about the culture and operations of the FCA and the financial services industry it regulates.

The report stated that Bailey had promised further evidence to the Committee in response to the raised issues, which the Committee confirmed it would publish.

The report also confirmed the Committee’s work will include assessing the effectiveness of the Government in implementing its responsibilities, in relation to the remit and powers of the FCA. The Committee stated that there was a gap between public expectations and the current powers and performance of the FCA, and that it was clear in its duty to support the Government and the FCA in a process of improvement.

Commenting on the report, Treasury Committee chair, Mel Stride MP, 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 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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