Former Virgin Money boss has Bank of England appointment delayed due to “conflict of interest” concerns
Dame Jayne-Anne Gadhia, the former chief executive of Virgin Money, has had her appointment to the financial policy committee of the Bank of England pushed back for a year after The Treasury was forced into a postponement to avoid “conflicts of interest”.
Dame Jayne-Anne, 57, had been due to join the committee next month, as per a decision announced by the Treasury in December.
This was scrapped yesterday when the Treasury said she would now only join in April 2020.
The change of plan comes just two days after MPs on the public accounts committee criticised the Bank for its out-of-date working practices and for failing to practise what it preaches in its attitude to compliance failings.
Dame Jayne-Anne left Virgin in October when it was taken over by CYBG, the group behind the Clydesdale and Yorkshire Bank franchises, but she agreed to be a paid adviser to David Duffy, 57, its chief executive, for the following 18 months.
It is understood that Dame Jayne-Anne’s contract with CYBG was disclosed before her appointment but there was further concern as CYBG was recently upgraded by the Bank of England to a Category 1 institution.
This change of status means it is now for the first time subject to Bank of England stress tests and so become a more important entity for scrutiny by the FPC.
In a statement issued yesterday, The Treasury, said: “Dame Jayne-Anne Gadhia was appointed as an external member of the Bank of England’s Financial Policy Committee (FPC) in January 2019. To ensure Dame Jayne-Anne is free from conflicts arising from her continuing role with CYBG, she will now join the FPC in April 2020, rather than April 2019. The delay to her start date will ensure she does not have to recuse herself from significant parts of the FPC’s work.
“Martin Taylor has agreed to continue in his role on the FPC until Dame Jayne-Anne starts in 2020.”