Tyrie, pictured, said: “Parliament’s, and the [Treasury] Committee’s, influence over the appointment and dismissal of the Chief Executive of the FCA has been greatly strengthened by the arrangements set out in the Chancellor’s letter.
“Parliament will now be better placed to safeguard the FCA from interference – or the perception of interference – by the Treasury or Treasury Ministers.”
In a letter written to Tyrie yesterday (19 April), Chancellor of the Exchequer George Osborne said a “scrutiny is important and welcome” in the process for the appointment of the FCA’s CEO.
Osborne said: “I will therefore ensure that appointments to the CEO of the FCA are made in such a way to ensure the Treasury Committee is able to hold a hearing, after the appointment is announced but before it is formalised.
“Should the Treasury Committee recommend in its report that the appointment be put as a motion to the whole House, the government will make time for this motion and respect the decision of the House.”
Osborne added that he will seek to change the legislation governing the FCA CEO position to make it a fixed, renewable 5-year term.
“This would not apply to Andrew Bailey, who I recently announced as the new head of the FCA, but would first apply to his successor,” he said
Bailey, CEO of the Prudential Regulation Authority, was appointed as the FCA’s CEO in January, and will begin his role on 1 July.
The PRA subsequently named its insurance executive director Sam Woods as Bailey’s successor at that organisation.