Andrew Bailey, who will take over at the Financial Conduct Authority in July 2016, has distanced himself from statements made by his predecessor at the FCA, saying a shoot first, ask questions later isn’t a part of his philosophy.
As reported in the Financial Times, Bailey told delegates at the Financial Times European Financial Forum in Dublin that the FCA would take a more measured approach, and pointed to the ‘fact-based analysis’ of the Prudential Regulation Authority (PRA), which he has led for several years.
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Bailey also suggested he would spend time learning; he said: "I don’t think there’s any sense in turning up on day one and saying I have a blueprint…Over the coming months I will see how much of it I can do in terms of talking to people."
When asked about government interference, Bailey said: "I worry, in the sense that if you get a lot of it, it tells you that you haven’t got stable objectives which are well understood by both sides."
At the conference, he also confirmed that he did not apply for the job, but was instead approached to consider the role after Christmas. "I was approached to say, would U consider the job."
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By GlobalDataSince Bailey’s appointment was announced, a number of people and companies have weighed in with their opinions.
Michael Izza, chief executive at The Institute of Chartered Accountants in England and Wales (ICAEW) said: "The Financial Conduct Authority badly needs both stability and strong leadership, which Andrew Bailey can certainly give. He is well respected for the superb job he has done at the Bank of England and as CEO of the PRA – which he leaves in excellent shape.
The challenge in front of him should not be underestimated. The FCA does not just need to be a strong regulator, it also needs the support of the industry if it is to continue make the changes needed to restore trust in financial services. I have every confidence Andrew is the right man for the job."
This view was mirrored by Chris Cooper, managing director at Challenge Consulting. Cooper told Motor Finance that, on paper, Bailey looked like a good candidate for the role.
He said: "Notwithstanding how well Martin Wheatley did or did not do his job, and clearly there are differing opinions on that, it is clear that Andrew Bailey is probably a more experienced pair of hands, particularly with the stakeholder and political dimensions of their job."
Cooper added that Bailey was clearly capable and competent, and that he expected the new chief executive to be tough but fair. "One would expect him to be consistent, as far as it is possible to be, in conduct matters, and I think for the motor finance sector, he will, I’m sure, ask thoughtful and searching questions, and expect the motor finance industry to be on top of their game in demonstrating they are keeping the consumer fairly," he added.
Since Wheatley’s resignation, there have been fears that UK Chancellor George Osborne and the treasury might have undue influence in the supposedly independent regulator. However Cooper suggested the Bailey’s history suggests he will be his own man, and that he should be clear in what he’s trying to do.
"In terms of the question: ‘is there now a permanent hotline between Bailey and Osborne, or someone in the treasury?’ No. Will there be dialogue? I’d hope there would be," Cooper adds.
Labour MP and Treasury Select Committee Member John Mann, MP, on the other hand, described the appointment as a sideways move which showed Osborne had decided to downgrade consumer interests.
"This decision has big implications for pensioners who have seen massive changes in the pension market and I fear we will now see people at risk from misselling and excessive fees."
Mann added that he had evidence of a new scandal the FCA was trying to ‘sweep under the carpet,’ which, he said, provided further proof of the need for a strong independent regulatory and not: "another lackey for George Osborne and the banks."
Unsurprisingly Osborne took an opposing view, and described Bailey as "the outstanding candidate to the next chief executive of the FCA."
He added: "We have cast the net far and wide for this crucial appointment and, having led the Bank of England’s response to the financial crisis, Andrew is simply the most respected, most experienced and most qualified person in the world to do the job.
"His appointment is an important next step in the establishment of the FCA as a strong regulator, independent of government and industry."
