John McDonnell criticises Javid’s refusal to postpone Governor appointment
John McDonnell MP, Labour’s Shadow Chancellor, has criticised Sajid Javid over the Chancellor’s refusal to postpone the appointment of Andrew Bailey as the new governor of the Bank of England, following the failure of the FCA to monitor investment fund suspensions.
In a series of letters and questions in the Commons, McDonnell called on Javid to answer a series of questions about the inquiry into Bailey’s time as chief executive of the Financial Conduct Authority, before he is installed as the new governor of the Bank of England.
However, Javid has now written to McDonnell refusing a postponement and revealing that the FCA itself is conducting the inquiry into its own former chief executive.
John McDonnell MP said:
“I was assured by the Chancellor on the floor of the House of Commons that there was an independent inquiry being undertaken into the suspension of the Woodford Equity Investment Fund, having raised concerns about the role of the FCA.
“The Chancellor now tells me that the inquiry is being conducted by the FCA itself. This is a bizarre situation where the FCA is inquiring into itself. This is clearly not the independent inquiry the Chancellor described. An inquiry into the events surrounding Woodford must include an examination of the role of the FCA. It is hardly surprising that little confidence will be placed in the outcome of an inquiry in which the FCA is inquiring into itself.
“There is clear evidence now of a pattern of behaviour by the FCA in relation to the monitoring of fund suspensions that clearly warrants an independent inquiry and it should be obvious to the Chancellor that it would be best for all concerned that Mr Bailey’s installation as the governor of the Bank of England should be postponed until that inquiry reports and its results are fully considered.
“I fail to understand why the Chancellor is obstinately digging himself into a hole on this matter.”
Notes for editors
Sajid Javid wrote to John McDonnell on 24 January refusing a postponement of Bailey’s appointment and revealing that the FCA itself is conducting the inquiry into his time as its chief executive.