MPs raise ‘serious concerns’ over next Bank chief’s record as FCA boss

Andrew Bailey has come under fire over his leadership of the City watchdog just days before taking over at the Bank of England.

MPs on the Treasury select committee said they believe he was qualified to succeed Mark Carney as central bank Governor on March 16.

But they raised ‘serious concerns’ about his time at the Financial Conduct Authority (FCA). On his watch, they said, the regulator failed to act quickly enough on a series of scandals.

The shot across the bows came after Bailey fielded difficult questions in Parliament on Wednesday, when MPs examined his suitability for the new job.

Last night Tory MP Mel Stride, chairman of the committee, said: ‘The Treasury committee has raised a number of serious concerns regarding the performance of the FCA both before and during his time as its chief executive. 

‘Many of these concerns – around culture, transparency and insufficient speed of action – will remain a key focus for the committee.’

Stride said MPs would now focus on improving the FCA’s performance and warned that its next prospective boss would face ‘rigorous’ questioning.

Bailey, 60, took over as chief executive of the regulator in 2016, having previously been at the Bank since 1985.

On his watch, the watchdog has been criticised for doing nothing to help thousands of stranded investors who were denied access to their money when Neil Woodford froze his failing flagship fund.

There were also calls for a probe into the FCA after the collapse of London Capital & Finance with £236million of savers’ money.

And it has long been criticised for its handling of toxic RBS turnaround unit Global Restructuring Group, which was accused of destroying small businesses and seizing their assets.

Bailey said the FCA had tackled high-cost consumer credit and launched insider trading cases which resulted in convictions.