Miles was appointed by the Treasury as a non-executive director of the FSA on April 1, 2004. He is currently in his second three-year term as a board member. That term was to end on March 31, 2010.
In a letter to Treasury Select Committee chairman John McFall, sent on Tuesday, Miles says: “I remain clear that there are very unlikely to be conflicts in my role on the MPC and as a non-executive at the FSA. In addition I believe that close co-operation and collaboration between the Bank and the FSA is essential.
“I do not therefore believe that the Committee has grounds for concern that a conflict exists. The expression of concern by the Committee has, however, produced some press commentary which could lead people to believe that conflicts were possible and thus lead to questioning of my independence. I have only a few months of my term as a non-executive at the FSA to run. To remove completely any doubts that some might have over my facing any possible conflicts, I believe it is now better that I should not serve out those months.”
FSA chairman Lord Adair Turner says in a statement released today that Miles will step down from the role later this month.
He says: “Like David, my strong conclusion is that there are no potential conflicts arising from such cross-membership. I believe that the two positions are entirely compatible and, indeed, that there are some spin-off benefits.
“I regret David’s decision but would like to thank him for his significant contribution to the FSA during the last five years.”