Director of Content’s Comment: The right man for the FCA job?

Among those linked with the role were the chairman of the Australian Securities and Investments Commission Greg Medcraft; and Bank of England chief economist Andy Haldane.

The person who was placed in temporary charge, Tracey McDermott, was also tipped for a permanent tilt at the role, only to be ruled out earlier this month.

Well, this week we have an answer – and it is one that will probably be greeted with a sigh of relief by many, especially among the bankers that had come to see Mr ‘Shoot first, ask questions later’ Wheatley as a bit of a nemesis.

Because, into his shoes – from the other branch of the regulatory twin peaks – will abseil Andrew Bailey, the CEO of the Prudential Regulation Authority, and a Bank of England fixture since 1985.

Greeting his appointment, Osborne said “having led the BoE’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”.

My question is that having been so entrenched in the BoE his whole working life, is Bailey the right person for the role?

Leading a response to a crisis is one thing; but surely having someone capable of spotting a storm in the first place probably should have been a higher priority.

Bailey has been on the FCA board since 2013, but does he really understand the role of financial services vis-à-vis its customer base? I have my doubts, and would instead suggest this looks like a move to appease Osborne’s banking pals in the City, not challenge or unsettle them.

Of course, Bailey has yet to take up the reins, and he might surprise me.

Because Wheately’s obsession with thematic reviews and perceived lack of perspective when it came to proportional regulation was hardly what the insurance industry needed either.

Bailey’s early words and actions will be followed with interest; especially to see if he shares his predecessor’s predilection for shooting from the hip – and mouth – with his eyes closed and fingers in his ears.

Jonathan Swift
Director of content