The House of Commons Treasury Committee recently published its eighth report of session 2015/16 on the scrutiny of appointments.
This report discusses the scrutiny of a number of key appointments, such as the appointment of the Governor of the Bank of England (BoE), the Chairman of the Court of the Bank of England and the Chairman of the FCA.
The report also discusses the appointment of the Chief Executive of the FCA. It explains that the 2010-2015 Treasury Committee argued that legislation should provide that the FCA Chief Executive be subject to pre-appointment scrutiny by the committee. However, the government’s response was that the appointment should be made according to the pre-commencement hearing process appropriate for market-sensitive appointments, rather than a pre-appointment hearing.
The report states that the current Treasury Committee agrees with the 2010-15 Treasury Committee’s position. It believes independence of the FCA from interference is essential, and that independence can and should be entrenched by a statutory veto on appointments and dismissals to the post of Chief Executive of the FCA. The committee have also tabled an amendment to the Bank of England and Financial Services Bill 2015-16, which would give them such a veto.