Advisers have criticised the “collective madness” of the banking industry after the appointment of former FSA chief executive Sir Hector Sants to lead a review of bank competitiveness.
Sants, who presided over the regulator during the financial crisis and the RDR, will head a team at global management consulting firm Oliver Wyman and release the first review in autumn.
In November 2013 Sants quit his role as Barclays head of compliance and government and regulatory relations due to stress.
Verity Wealth Management partner James Watkin says: “You couldn’t make this stuff up, it’s the old boys’ network going around in circles.
“It’s a collective madness – if you continue to do the same thing you get the same result. We keep putting these people back in to these positions and I’ve seen it going on and on over 30 years.
“This guy’s not fit for purpose – he cannot head up an inquiry into the banking industry.”
John Cannaby Associates director Paul Wooley says: “It’s a whitewash – it’s just an incredible situation that somebody like that should be investigating the situation. I can’t understand why they wouldn’t have someone more independent, these inquiries are set up in such a way that they can only go one way – that’s the problem. Nothing constructive can be done if the person in charge is obviously biased in one way.”
The review will cover banking regulation, the risks of a ‘Brexit’, and the role of British banks compared to other major financial centres.