MP, Labour's
Shadow Chancellor, has criticised over the Chancellor’s
refusal to postpone the appointment of Andrew Bailey as the new
governor of the Bank of England, following the failure of the FCA
to monitor investment fund suspensions.
In a series of letters and questions in the Commons,
McDonnell called on Javid to answer a series of questions about
the inquiry into Bailey's time as chief executive of the
Financial Conduct Authority, before he is installed as the new
governor of the Bank of England.
However, Javid has now written to McDonnell refusing a
postponement and revealing that the FCA itself is conducting the
inquiry into its own former chief executive.
MP said:
“I was assured by the Chancellor on the floor of the House
of Commons that there was an independent inquiry being undertaken
into the suspension of the Woodford Equity Investment Fund,
having raised concerns about the role of the FCA.
“The Chancellor now tells me that the inquiry is being
conducted by the FCA itself. This is a bizarre situation where
the FCA is inquiring into itself. This is clearly not the
independent inquiry the Chancellor described. An inquiry into the
events surrounding Woodford must include an examination of the
role of the FCA. It is hardly surprising that little confidence
will be placed in the outcome of an inquiry in which the FCA is
inquiring into itself.
“There is clear evidence now of a pattern of behaviour by
the FCA in relation to the monitoring of fund suspensions that
clearly warrants an independent inquiry and it should be obvious
to the Chancellor that it would be best for all concerned that Mr
Bailey's installation as the governor of the Bank of England
should be postponed until that inquiry reports and its results
are fully considered.
“I fail to understand why the Chancellor is obstinately
digging himself into a hole on this matter.”
Ends
Notes for editors
wrote to on 24
January refusing a postponement of Bailey’s appointment and
revealing that the FCA itself is conducting the inquiry into his
time as its chief executive.
https://www.ft.com/content/8a80541f-2202-459c-bc58-49c9ce0a4161
https://www.ft.com/join/licence/7406e103-e2c9-4213-a207-dc5eb76d791f/details?ft-content-uuid=19c54e76-33bf-11ea-a329-0bcf87a328f2
