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Ex-FCA chief to join Standard Chartered

Tracey McDermott FCA 700x450.jpg

Former acting FCA chief executive Tracey McDermott will join Standard Chartered as its head of corporate, public and regulatory affairs.

According to the Financial Times, McDermott will join the bank’s management team as it pushes ahead with a plan to turn around its performance through cost-cutting measures including getting rid of $100bn of risky assets, cutting its cost base by $2.9bn and axing 15,000 of its 86,000 jobs by 2018.

In recent years, Standard Chartered has been fined by US regulators for sanctions breaches. It has also had issues with anti-money laundering and is being monitored until the end of the year to make sure historic failings have been fixed.

The FCA is also investigating Standard Chartered in relation to its financial crime controls.

Standard Chartered declined to comment to the newspaper as did McDermott, who is expected to recuse herself from discussion of the FCA probe.

McDermott left the FCA in July having been at the helm since previous chief executive Martin Wheatley departed in 2015.

After being tipped as Wheatley’s permanent successor, then chancellor George Osborne announced on Radio 4 in January 2016 that McDermott had ruled herself of the top job.

Her move into the private sector follows the announcement last week that FCA chief criminal counsel Claire Lipworth, who has been for three years, will become Hogan Lovells financial services team partner.

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Comments

There are 15 comments at the moment, we would love to hear your opinion too.

  1. Interested in people’s views on the appropriateness of senior regulators’ staff accepting roles in regulated entities shortly after departing their employment at the regulator.

    • Its been six months, what do you expect her to do? Once you work for the UK regulator you cant work in any of the 60,000 regulated firms? Come on.

      If anything shes best placed to work with that firm to ensure it remains compliant.

    • The Committee for standards in Public Life (previously The Nolan Committee) produced recommendations on this in Sept – called Striking The Balance – which I contributed to. I am not sure FCA have read it (?)
      David Jackman (former FSA head of Ethics and T&C)

  2. I do hope she fairs better than the last regulatory leader who joined a bank, the skeletons where packed into (what its seems) every cupboard, so much so, it wore him out and he had to go have a good long lie down in the garden of tranquility !

    Not that I would want to seem bitter, but one would hope she falls flat on her face !

    • Wanting her to fall flat on her face? Bitter?

      More like Abhorrent.

      • I might have misunderstood your post but did you really mean to use the word Abhorrent?

        1. causing repugnance; detestable; loathsome: an abhorrent deed.
        2. utterly opposed, or contrary, or in conflict (usually followed by to): abhorrent to reason.
        3. feeling extreme repugnance or aversion (usually followed by of):
        abhorrent of waste.
        4. remote in character (usually followed by from): abhorrent from the principles of law.

        I’m not sure the word works here.

        • ‘These views, to me are abhorrent’

          I didn’t realise I needed to form full sentence structure when I my intention was replacement of the original adjective ‘bitter’.

          • Yes, but your post doesn’t work does it?

            He’s ‘bitter’ not ‘abhorrent’. Its you that finds his post abhorrent. He’ll still be bitter…….

        • You can also ‘be’ abhorrent – to cause disgust.

          • Yes, but he’s not disgusted he’s bitter.

            If you’re disgusted with what he’s posted why didn’t you just say so?

            If you think its abhorrent she’s moved from the FCA and taken up this job then just say so.

            But in the scheme of things she’s doing no different to the lot of them given half a chance.

          • Lets just face the facts here Matthew, She (McDermott) worked and latterly headed the countries regulator the FCA (if we needed to be reminded) an entity who’s job it is, to up hold all the core values of integrity and ethics along with ensuring companies it regulates act within the best interests of its customers ! (are you with me so far?)

            Now she (McDermott) as taken up a position with a company (Standard Chartered) who has quite obviously had (and still has) an appalling record of conduct, even bad enough to be fined by the US regulator and is still being monitored for money laundering problems (make of that what you will) !

            Now her (McDermott’s) job is to off load £100 billion of “risky”
            assets, (probably to some poor unsuspecting entity), cost cut to the tune of £2.9 billion, and finally sack 15,000 people ! oh and doing a bit of compliance as well (an insider who can pull in a few favours) ?

            Now this speaks volumes about Ms McDermotts integrity, her ethics and the FCA itself, I mean to have a very high profile employee move into such a controversial job role and with an……. well what can only be deemed as a unsuitable company and not in keeping with the FCA’s own very high standards (oh hahahahahaha) ?

            Now; to right, I hope she falls flat on her face, quite obviously she is chasing the money and on the next rung of being a career bureaucrat.

  3. I could do that, it doesn’t need an ex head of the FCA to get rid of 15,000 jobs does it? As for getting rid of risky assets, there’s the starting point, who undertook to buy those risky assets in the first place. One job gone, or should it be more than one?

    ‘In recent years, Standard Chartered has been fined by US regulators for sanctions breaches. It has also had issues with anti-money laundering and is being monitored until the end of the year to make sure historic failings have been fixed.’

    ‘The FCA is also investigating Standard Chartered in relation to its financial crime controls.’ Conflict of interest or possibly game-keeper turned poacher?

    No doubt they’ll be hoping she has a quiet word with her chums.

  4. I think she is probably just the best person for the job.

    • You’ll be wanting her to get an OBE next, lol.

      The Financial Conduct Authority was first heavily criticised by the politicians and the public over its scrapping of two banking reviews within a matter of months. One was the major banking culture review announced in its business plan. The other centred on allegations that HSBC’s Swiss private banking arm helped wealthy clients dodge tax between 2006 and 2007

      Remind me…..!!

  5. I noticed David Jackman’s comment above. The relent document can be found at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/554817/Striking_the_Balance__web__-_v3_220916.pdf.

    Point 4.46 on page 36 recommends that “The process for departing board members and senior executives (of regulatory bodies) should be in line with arrangements for Ministers and senior Civil Servants. The Business rules appointments for Former Ministers require:

    “On leaving office, Ministers will be prohibited from lobbying Government for two years. They must also seek advice from the independent Advisory Committee on Business Appointments about any appointments or employment they wish to take up within two years of leaving office. Former Ministers must abide by the advice of the Committee.” [Ministerial Code, section 7.25]

    1. The business appointment rules for former Ministers seek to counter suspicion that:
    a) the decisions and statements of a serving Minister might be influenced by the hope or expectation of future employment with a particular firm or organisation; or
    b) an employer could make improper use of official information to which a former Minister has had access; or
    c) there may be cause for concern about the appointment in some other particular respect.”

    So after six months? The appointment should not go ahead as there is a strong suspicion that Ms McDermott was not serving the public interest whilst Head of the FCA. I don’t agree with those that say good look to her. She voluntarily signed up to join the FCA, no-one forced her and she took her pay – presumably she therefore new what the situation was if she went to work elsewhere.

    She should therefore be expected to act with integrity and wait the required two years before taking up any appointment with regulated firm.

    Just another example of the FCA’s “do as we say, not do as we do..” How can we treat anyone at the FCA with any respect?

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