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Charlotte Hogg resigns from new Bank of England role Charlotte Hogg resigns from new Bank of England role
(about 1 hour later)
Charlotte Hogg has resigned as deputy governor of the Bank of England. Charlotte Hogg has resigned as deputy governor of the Bank of England, after MPs on the Treasury select committee questioned her suitability to hold the role she was only promoted into barely two weeks ago.
She has quit after MPs on the Treasury select committee issued a critical report, saying her failure to disclose a potential conflict of interest calls into question her competence for the job. Her departure from the number two job in Threadneedle Street was announced 25 minutes after the committee published its highly critical report prompted by her failure to disclose that her brother works for Barclays – which is regulated by the Bank of England.
The committee said it considered that Hogg’s “professional competence falls short of the very high standards required to fulfil the additional responsibilities of deputy governor for markets and banking”.The committee said it considered that Hogg’s “professional competence falls short of the very high standards required to fulfil the additional responsibilities of deputy governor for markets and banking”.
Although the MPs have only an advisory role, their tough response put pressure on the 46-year-old to step back from her promotion from chief operating officer which took place two weeks ago. Although the MPs have only an advisory role, their tough response put pressure on Hogg to resign from the Bank, which she had joined in 2013 as its first chief operating officer.
In a hearing last month, Hogg had told the Treasury select committee that she had disclosed to the Bank that her brother Quintin Hogg worked at Barclays. It is a dramatic fall from grace for Hogg – a scion of one of Britain’s longest established political families – and once cited as a potential successor to the Bank of England governor, Mark Carney, who had hired her as part of his effort to overhaul the staid institution.
After that hearing, the MPs had issued a report in which they concluded she had the competence for the role. But days later she was forced to write to the committee to admit she had not made the disclosure – and had breached the code of conduct she had helped draft when she joined the Bank of England in 2013 as chief operating officer. Hogg’s problems began after she told a Treasury select committee hearing last month that she had informed the Bank that her brother Quintin Hogg worked at Barclays.
After that hearing, the MPs concluded she had the competence for the role. But days later she was forced to tell the committee she had not made the disclosure – and had breached the code of conduct she herself had helped draft when she joined the Bank in 2013.
“In its report on 2 March, the committee concluded that Ms Hogg had the professional competence necessary to fulfil the role of deputy governor for markets and banking. Had it known then what has since been disclosed, it would have taken a different view,” the MP said.“In its report on 2 March, the committee concluded that Ms Hogg had the professional competence necessary to fulfil the role of deputy governor for markets and banking. Had it known then what has since been disclosed, it would have taken a different view,” the MP said.
“Professional competence for this role includes an ability to follow the rules, particularly those that one has had a hand in writing and enforcing; an understanding of why those rules are important; and an awareness of the risks arising from actual and potential conflicts of interest, and the perceptions of conflict.“Professional competence for this role includes an ability to follow the rules, particularly those that one has had a hand in writing and enforcing; an understanding of why those rules are important; and an awareness of the risks arising from actual and potential conflicts of interest, and the perceptions of conflict.
“Ms Hogg’s oral and written evidence has given the committee grounds for concern on all three counts. The committee considers that her professional competence falls short of the very high standards required to fulfil the additional responsibilities of deputy governor for Markets and banking.”| “Ms Hogg’s oral and written evidence has given the committee grounds for concern on all three counts. The committee considers that her professional competence falls short of the very high standards required to fulfil the additional responsibilities of deputy governor for markets and banking.”|
In an attempt to draw a line under the matter, the Bank of England governor, Mark Carney, issued Hogg with a verbal warning after her admission. In an attempt to draw a line under the matter, Carney issued Hogg with a verbal warning after her admission.
More details to follow ... However, after the Bank announced her resignation, Carney said: “While I fully respect her decision taken in accordance with her view of what was the best for this institution, I deeply regret that Charlotte Hogg has chosen to resign from the Bank of England.”
Hogg’s letter to Carney – dated Monday evening – showed she had offered to resign last week.
“Last week I offered you my resignation in recognition of the fact that I made a mistake in not declaring my brother’s work on the forms that the Bank requires. It has become clear to me that I should now insist,” said Hogg in the letter, which was also sent to Anthony Habgood, the chair of the Bank’s court – akin to its board.
“As I have said, I am very sorry for that mistake. It was an honest mistake,” she said.
“I have not shared confidential information or misused it in any way. I do not have any financial relationship with my brother and I am utterly committed to the safeguarding of confidential information and the separation of a home and work life. However, I recognise that being sorry is not enough.”
Hogg will still cast her first vote on interest rates at the monetary policy committee on Wednesday, before the verdict is published on Thursday, because although she has resigned her departure date has not been agreed.
Hogg, 46, is an Oxford economics graduate. Both Hogg’s parents had leading roles in Sir John Major’s government and her grandfather, Quintin Hogg, better known as Lord Hailsham, was a prominent Tory who almost won the Conservative party leadership following the resignation of Harold Macmillan in 1963.
The Bank is now expected to advertise two roles: her former role as chief operating officer and the role of deputy governor.