MPs given power to veto FCA exec hires

In his letter, Osborne said that appointments to the FCA CEO would be subject to a fixed, renewable, 5-year term.

However this will not apply to Andrew Bailey who was recently appointed head of the FCA and is due to take up the post on 1st July.

Andrew Tyrie said:

“The FCA needs demonstrably independent leadership. Parliament’s, and the Committee’s, influence over the appointment and dismissal of the Chief Executive of the FCA has been greatly strengthened by the arrangements set out in the Chancellor’s letter. Parliament will now be better placed to safeguard the FCA from interference - or the perception of interference - by the Treasury or Treasury Ministers.

“Quangos are acquiring huge powers across Government. Unless they are required by Parliament to explain their actions to Select Committees, the risk will be that many will be left unaccountable, in practice, to anybody. That is why a greater role for Parliament, and for Select Committees, in the appointment and dismissal of the people that head up these quangos is so important.”