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Tyrie gets City backing to be new FCA chair

Andrew Tyrie Tory conf 2013.jpg
Former TSC chair Tyrie

Former Treasury select committee chair Andrew Tyrie has the backing of key city figures to become the FCA’s chairman next year, according to reports.

Current FCA chair John Griffith-Jones announced in July he would be stepping aside next year when his five-year term comes to an end.

A number of directors at asset managers, banks and insurers are putting their weight behind a potential application from Tyrie to step into the position, Sky News says.

Tyrie did not respond to requests for comment, but insiders tell Sky that he may be interested in the role.

FCA board members are decided by the Treasury. Applications for the FCA chair role close next week, with Griffith-Jones’ replacement to take over at the end of March.

Tyrie ran the Treasury select committee, the group of MPs charged with interrogating the FCA on a regular basis, until this July, when former education secretary Nicky Morgan was elected by MPs to head the group.

Having a former MP chair the FCA could throw up questions over the independence of the regulator, however.

The Treasury used to appoint the chief executive of the FCA without a Treasury committee hearing first, only after the appointment had been decided.

Tyrie oversaw the introduction of a new system where the Treasury select committee can say it does not approve of a nomination, and pass the decision to a binding vote from MPs.

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. Now that would be a first – appointing somebody who actually understands the issues and has experience within the sector.

    Whatever next, appointing an adviser/ex-adviser to run PIMFA?

  2. We he (Tyrie) would get my vote

    Lets face it, he has been highly critical of the regulator in the past but unable to hold them to account whilst at the TSC,

  3. Surely a first class choice?

  4. If he does become the next FCA chairman, I imagine there may well be a few heated arguments behind closed doors, not to mention a few personal conflicts for him to grapple with, given that the role seems primarily to be that of a highly paid spin doctor and whitewasher.

  5. It may be a very good way to inject a dose of realism.

    As for independence, I don’t see that as an issue as I have always felt that the FCA is an anti-democratic Quango that can be treated as independent when the politicians need someone to blame and as a means to implement Government policy when it suits HMG to do so. A very clever manoeuvre, but not always helpful in a democracy due to convenient lack of real accountability to parliament and the electorate.

  6. As good a choice as I could think of. Let’s hope he takes the job and carries on in the same fashion he has shown in the past.

    • If by carrying on in the same fashion as before you mean achieving bugger all (at least as far as the FCA was concerned), I sincerely hope not. Rather, I hope he makes the most almighty ruckus to get things changed. I don’t actually think he will, but it’s nice to think that he might.

  7. This could be a good thing.

  8. The FSMA 2000 went through 1200 amendments before a clause was added at the last minute.

    http://www.ifadu.co.uk/downloads/FinancialServicesandMarketsBill.doc

    Mr. Andrew Tyrie (Chichester): This is a quite extraordinary clause. I should be grateful if Labour Members would have a look at it, rather than doing their correspondence.
    The Vice-Chamberlain of Her Majesty’s Household (Mr. Graham Allen): It is a bit late for that.
    Mr. Tyrie: I agree with the hon. Gentleman’s comment; it is a very late clause. It means that we have all been wasting our time. A clause that just said “Let’s have some financial regulation”, followed by the clause that we are considering, would have done the trick very nicely, coupled with an explanatory note about the Government’s intentions. The clause gives the Treasury powers virtually to rewrite the Bill from top to bottom. It goes far too wide and our amendments only scratch the surface of what is required. I believe that the Committee has accepted 440 amendments, six of which were tabled by the Opposition. That was out of a total of 970 amendments that were tabled, as well as 18 new clauses. We have had 35 sittings and 100 hours work on the Bill. On no fewer than 63 occasions—I counted—Ministers have agreed to give further attention to other parts of the Bill, in addition to the amendments that I have mentioned. Why on earth have we been doing all this work if, whenever the Treasury feels like it, it can just alter the Bill at will?
    The first thing that I felt I needed to discover in response to the clause was whether such a provision existed in the Financial Services Act 1986. After all, if the Government and previous Administrations have carried on in this way in the past, perhaps I should not be so concerned about it. Incidentally, lest any hon. Member should feel that I am over-egging things, it is important to read the clause. It states that the Treasury may “by order”—that is by negative resolution—
    “make such incidental, consequential, transitional or supplemental provision as they consider necessary or expedient for the general purposes, or any particular purpose, of this Act”.
    Not content with that, in subsection (4) we find:—
    “No other provision of this Act restricts the powers conferred by this section.”
    In other words, the licence is to do exactly what the Treasury wishes. That is why it is worth examining the 1986 Act.
    The 1986 Act also enables the Treasury to vary the provisions, but it is far more tightly circumscribed than what is before us in the Bill.
    4.45 pm

  9. Because the City want him and for all the positive reasons laid out above… he won’t get the job.

    Once this is made clear to him privately he will gracefully withdraw any aspirations he may have with a nice statement mentioning personal reasons, not the right moment in his career, unable to make the necessary time commitment, etc.

    I hope I’m wrong but the cynic in me says otherwise.

  10. Another idiot, who cares if the banks want him and as for Niki Morgan she barking mad, just look at the woman. Let’s have someone who know what the job is about and understands financial services. I nominate Tony Gordon.

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