News Release
Board of Banking Supervision Chairman Appointed
21 May 1998
At its meeting on 20 May, the independent members of the Board of Banking Supervision elected Sir Alan Hardcastle as Chairman of the Board with effect from 1st June.
Sir Alan Hardcastle (aged 64) was the Chairman of the Regulatory Board of Lloyd’s of London and a nominated member of the Council of Lloyd’s until last year. He was previously Chief Accountancy Adviser to HM Treasury, Head of the Government Accountancy Service, and the Treasury observer on the Accounting Standards Board. Prior to that he was a partner with KPMG and was President of the Council of the Institute of Chartered Accountants in England and Wales from 1983-85. As well as accountancy expertise, Sir Alan brings to the Board experience in insurance regulation and investigations, having also been a DTI inspector.
Sir Alan has been a member of the Board of Banking Supervision since its inception, first on the non-statutory "shadow" Board set up in May 1986, and then on the statutory Board established in November 1987. During the Board of Banking Supervision Inquiry into the Circumstances of the Collapse of Barings, conducted by the Board in 1995, he acted as "Convenor for the Independent Members", signing off the Report on their behalf in July 1995.
The appointment was welcomed by both Eddie George, Governor of the Bank of England, and Howard Davies, Chairman of the Financial Services Authority, both of whom are currently members of the Board.
Notes for Editors
The Board operates under the Banking Act 1987. With the commencement of the Bank of England Act on 1 June, the Board will transfer to the Financial Services Authority which will from then be the authority responsible for banking supervision.
The Board provides advice on the following matters:
- the general principles and policy of supervision of institutions authorised under banking supervisory legislation;
- the development and evolution of supervisory practice;
- the administration of banking supervisory legislation, including advice on individual cases;
- the structure, staffing and training of banking supervisors.
The Board and its members are free to take the initiative in raising matters within these areas, and have right of access to the Chancellor.
Until now, the Board of Banking Supervision has been chaired by the Governor of the Bank of England but, with the transfer of responsibility for banking supervision to the Financial Services Authority on 1 June, the Bank of England Act provides for the non-executive, independent members to elect a chairman from amongst their number.
There are six independent members: Sir Alan Hardcastle, Mr Peter Gerrard, Mr Harry Taylor, Mr Howard Davies, Sir Dennis Weatherstone, and Mr Gottfried Bruder. The Governor, the Deputy Governor and Mr Michael Foot, Executive Director, Supervision and Surveillance, are members of the Board ex-officio.
From 1 June, independent members will be appointed jointly by the Chairman of the FSA and the Chancellor; the number of ex officio members will reduce to two, namely the Chairman of the FSA (Howard Davies) and the Managing Director of Financial Supervision at the FSA (Michael Foot). Thus, a vacancy for a further independent member of the Board will arise from 1 June. Independent members receive a £14,000 annual fee plus expenses.
