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| Version 1 | Version 2 |
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| George Osborne appoints Andrew Bailey as FCA chief | George Osborne appoints Andrew Bailey as FCA chief |
| (35 minutes later) | |
| Andrew Bailey is cutting short his tenure as deputy governor of the Bank of England to become the new head of the City regulator which has been without a full-time boss since September and is embroiled in a row about relaxing its approach to wrongdoing in the banking industry. | |
| His appointment as chief executive of the Financial Conduct Authority was a surprise to the City of London and comes before his term at the Bank ends in April 2018. | His appointment as chief executive of the Financial Conduct Authority was a surprise to the City of London and comes before his term at the Bank ends in April 2018. |
| George Osborne approached Bailey about the role despite insisting he had conducted a wide search for the role. The chancellor said Bailey would be “tough but fair” in City dealings. The Bank of England governor, Mark Carney, said it could take up to six months for him to take up the new role as Bailey will not leave until his successor is found. | |
| The FCA is responsible for clamping down on bad behaviour and has handed out a string of record fines for rigging foreign exchange and Libor markets although Osborne is now facing accusations that he has softened his stance towards the banking industry. | |
| Osborne has had to fight off criticism that he encouraged the FCA at the end of last year to abandon a review into banking culture. | |
| Related: Acting FCA boss withdraws from race for top job | Related: Acting FCA boss withdraws from race for top job |
| The chancellor said: “We have cast the net far and wide for this crucial appointment and, having led the Bank of England’s response to the financial crisis, Andrew is simply the most respected, most experienced and most qualified person in the world to do the job. | The chancellor said: “We have cast the net far and wide for this crucial appointment and, having led the Bank of England’s response to the financial crisis, Andrew is simply the most respected, most experienced and most qualified person in the world to do the job. |
| “His appointment is an important next step in the establishment of the FCA as a strong regulator, independent of government and industry. The government is determined that the financial sector operates to the highest standards. Anyone who has dealt with Andrew knows he will be tough but fair, and understands the flaws and merits of the sector better than anyone.” | |
| Bailey succeeds Martin Wheatley, who was forced out in the summer when Osborne refused to renew his contract. His role had been filled temporarily by Tracey McDermott, whom the chancellor had announced earlier this month did not want the job full-time. | Bailey succeeds Martin Wheatley, who was forced out in the summer when Osborne refused to renew his contract. His role had been filled temporarily by Tracey McDermott, whom the chancellor had announced earlier this month did not want the job full-time. |
| Bailey – who ran the Bank’s Prudential Regulation Authority (PRA) – said it was a great honour to have been asked to take on the role. | |
| He said: “After a lot of thought I have decided to move and do all that I can to make the FCA effective and successful. My intention is to move once a successor is found for the PRA, and while I will of course not be involved in that process, it matters greatly to me that it provides for the successful future of the PRA.” | He said: “After a lot of thought I have decided to move and do all that I can to make the FCA effective and successful. My intention is to move once a successor is found for the PRA, and while I will of course not be involved in that process, it matters greatly to me that it provides for the successful future of the PRA.” |
| His salary and pay was not disclosed although Wheatley’s salary was £460,000. | His salary and pay was not disclosed although Wheatley’s salary was £460,000. |
| The Institute of Chartered Accountants in England and Wales (ICAEW) said Bailey was leaving the PRA in good shape. “The challenge in front of him should not be underestimated. The FCA does not just need to be a strong regulator, it also needs the support of the industry if it is to continue to make the changes needed to restore trust in financial services. I have every confidence Andrew is the right man for the job,” said Michael Izza, the ICAEW chief executive. | |
| The FCA also announced the appointment of a number of new non-executive directors, including the former Treasury minister Ruth Kelly, and Baroness Hogg, the former head of the prime minister’s policy unit from 1990-95. |