U.K. Lawmakers Renew Demand for Veto on BOE Governor Appointmentby
Treasury Committee wants greater powers over BOE, FCA
Cross-party panel also wants to hold pre-appointment hearings
U.K. lawmakers renewed a demand for greater powers over the appointment and dismissal of Bank of England governors and chief executive officers of the Financial Conduct Authority to ensure their independence from the government.
Parliament’s Treasury Committee, which scrutinizes the two authorities and the U.K. finance ministry, said in an e-mailed report on Friday that it wanted amendments to draft legislation that would give the cross-party panel of politicians a veto. It also said it wanted to be able to hold hearings to vet applicants for the roles before they’re appointed.
The central bank and U.K. regulators have come under increased scrutiny since the financial crisis, with the Treasury Committee leading calls for greater accountability and more transparency. Chancellor of the Exchequer George Osborne has defended the current arrangements on the basis of the “market sensitivity” of key appointments. Andrew Tyrie, the Treasury Committee’s chairman, said that was an inadequate explanation.
“Public appointments to quangos need more rigorous scrutiny,” Tyrie said. “The public, too, need to have confidence that the government is not interfering with independent supervisors and regulators.”