U.K. Treasury Committee to Probe Bank of England Appointments

The U.K. Parliament’s Treasury Committee will investigate the Bank of England’s appointment process and the independence of the Bank’s Financial Policy Committee.

The committee on June 5 expressed reservations about the appointment of Clara Furse, the former chief executive officer of the London Stock Exchange (LSE), to the FPC. it questioned her “awareness of the importance of asserting the independence” of the body.

The inquiry will look at the different rules governing the appointment and behavior of members of the FPC, the Monetary Policy Committee and the Court of the Bank of England. In a statement, the committee raised “serious inconsistencies and complexities in the structure of accountability of the Bank of England.”

“The FPC is still finding its feet,” Andrew Tyrie, chairman of the Treasury Committee, said in a statement. “It is crucial that its independence is safeguarded from the start. It is therefore particularly important that the appointment process and early exchanges between the Treasury and the FPC don’t give the appearance that it has been compromised.”

To contact the reporter on this story: Robert Hutton in London at rhutton1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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