THE Bank of England’s chief economist has emerged as frontrunner to head the Financial Conduct Authority (FCA).
Andy Haldane, 48, is tipped to be chief executive at the City watchdog when Martin Wheatley leaves next year.
Chancellor George Osborne, who refused to renew Wheatley’s contract from next April, is planning to start the official recruitment process this week and the successful candidate will be named in coming months.
“Haldane is definitely in the frame and is considered to be young and keen. His one problem is probably a lack of experience in retail banking,” said a senior bank executive.
Haldane has built up a reputation as a free thinker who advocates tough regulation for financial services. He has criticised banks for not prioritising profits, with money going to dividends instead of job creation or salary increases.
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He also warned that regulators might have to become more active to manage risks in “non-banks”, such as insurers, hedge funds and pension funds. In recent months, Haldane has appeared increasingly isolated in Threadneedle Street as he opposes raising interest rates in the near term, in contrast with governor Mark Carney’s recent statements.
The FCA post offers a basic salary of £460,000 — more than twice Haldane’s current £189,000 pay.
The new chief executive will have a crucial role in policing and cleaning up Britain’s scandal-prone banking sector. He will also have to balance a tough approach to regulation with ensuring that the City remains competitive against rivals such as New York.
The FCA is the second pillar of Osborne’s regulatory system that includes the Bank of England’s financial policy committee. The two regulators supervise security in banking and insurance .