New Bank of England governor readies institution for 'significant change'

The job of deputy governor of the Bank of England is to be advertised in the coming days, kickstarting speculation about who will take on the £260,000-a-year role at a time of sweeping regime-change expected to take place under the new governor, Mark Carney.

Carney takes up his position formally on Monday but the 48-year-old Canadian is already making his mark on the 319-year-old institution, with the appointment of a new chief operating officer and the decision to bring his own press spokesman with him from the Bank of Canada.

The advert for a new deputy governor is likely to be placed as soon as this weekend. It is the role being vacated by Paul Tucker, who was passed over for the top job and whose resignation was announced this month. Tucker is to leave in the autumn, six months before his five-year team in charge of financial stability was due to end in February. The advert to replace the career central banker can already be found on the Cabinet Office website. It describes the job as " high-profile and influential role at a time of significant change – both within the bank and throughout global and domestic financial markets".

"The new deputy governor will play a key role in leading the bank through the continued implementation of reforms to the regulatory system, including the bank's new responsibilities for prudential regulation and systemic stability," the advert reads. The candidate, it says, will need "acute political sensitivity and awareness" and "undisputed integrity and standing".

The advert is expected to be followed next year by another, calling for candidates to replace Charlie Bean, the deputy governor responsible for monetary policy, who has agreed to stay on until a year from now – longer than he had intended – to help Carney settle in at a time when the Bank has been handed new powers to regulate the troublesome banking industry.

Technically, the deputy governors are appointed by the Queen and selected by a panel of interviewers, but Carney will be consulted on the candidates to take on the two deputy governor jobs at the Bank. A third deputy governor, and a new position, is held by Andrew Bailey, the head of the new Prudential Regulation Authority set up by the coalition government to regulate the biggest banks and insurance companies from inside the Bank of England.

Candidates to replace Tucker must submit their applications by 15 July if they are to be considered for a role that involves responsibility for 600 or so staff who oversee the financial system.

The role also brings with it a seat on the new financial policy committee, which looks for "ticking timebombs" in the financial system, the monetary policy committee, the PRA and the Bank of England court (akin to a board of the company).

The deputy governors will be the closest lieutenants of Carney, who has been lured from Ottawa with £480,000 a year and a £250,000 annual housing allowance for his five-year appointment.

The former investment banker has already begun to signal changes at the Bank, where visitors are greeted by pink-suited security guards, and messages in the governor's "parlours" are relayed by "parlour stewards", also dressed in pink coats. His attitude to the pink-frocked guards is not yet known.

Among the recent appointments to his central team are:

• Charlotte Hogg: she was appointed two weeks ago as the bank's first chief operating officer and the most senior woman in the bank. The 42-year-old is being released by her employer – the UK arm of Spanish bank Santander – early to enable her to take on the role on 1 July, the same day Carney takes the helm.

Her role is intended to be low-profile, overseeing the day-to-day management functions of the bank, such as people issues, security and IT, to free up the governor for the task of overseeing monetary policy and financial stability. When she was appointed, Carney said: "My tenure at the Bank will oversee a significant transition." Hogg, though, is in some ways part of the establishment, having begun her career at the bank and being descended from a high-profile political family: Baroness Hogg is her mother and her father is Viscount Hailsham, the former Conservative cabinet minister Douglas Hogg.

• Jeremy Harrison: he is arriving at the end of July on a two-year secondment from Bank of Canada where he has, until now, been Carney's personal spokesman. Harrison is expected to play a crucial role in briefing Carney ahead of his public appearances but his appointment may also signal a change in the way the governor communicates. King only gave his first live television interview last year while Carney is far more accustomed to TV appearances. • Jenny Scott: the former BBC journalist is returning to the Bank on a two-day -a-week role as a communications adviser to the governor.

Carney's first press conference will be on 7 August, when he presents the quarterly inflation report, while his first public speech will be Nottingham a few weeks later – and the choice of a non-City location for his first speech could already indicate a focus on the real economy rather than the financial sector.

Powered by article was written by Jill Treanor, for The Guardian on Thursday 27th June 2013 21.17 Europe/London © Guardian News and Media Limited 2010


image: © World Economic Forum

Have something to tell us about this article?

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...