Chancellor Savid Javid has defended Andrew Bailey’s track record at the Financial Conduct Authority during the Woodford Equity Income implosion as Labour calls for his appointment as Bank of England governor to be halted.
Speaking in the House of Commons on Monday, shadow chancellor John McDonnell pressed Javid to launch an independent enquiry into Bailey’s tenure at the FCA before he is installed at the helm of the central bank.
Labour is not alone in criticising Bailey’s appointment to the Bank of England with investment industry figures also criticising his three-year tenure at the FCA.
Labour slams Woodford dividends
Bailey was revealed to be Mark Carney’s successor at the Bank of England just before Christmas.
But McDonnell highlighted that he had been caught “asleep at the wheel” during the Woodford Equity Income suspension and subsequent wind-down.
“From the filings lodged today at Companies House it’s reported that £13.8m of dividends were received by Mr Ian Woodford and his chief executive in the lead up to the crisis that engulfed Woodford Investment Management and affected so many investors deleteriously,” he said, getting Neil Woodford’s name wrong.
“This adds to the concerns already expressed by others that Mr Bailey was asleep at the wheel during his period at the FCA.”
LCF and RBS scandals also highlighted
McDonnell also highlighted problems at London Capital & Finance and RBS. “Can I ask the chancellor, did he consult any of the victims of these scandals before he appointed Mr Bailey?”
Javid responded that Bailey had been the stand out candidate for the role.
“Any reasonable person that looks at Mr Bailey’s track record, his track record of public service, outstanding public service, will see that he’s eminently qualified,” said the chancellor.
He did not state whether victims of the LCF, Woodford and RBS scandals had been consulted on Bailey’s appointment.
Economic secretary John Glen is meeting with the FCA today about the scandals highlighted in the exchange. The regulator launched an investigation into the Woodford Equity Income fund two weeks after its suspension in June 2019.
