The City watchdog’s former enforcement chief is joining the board of a new bank lobbying group that launches this week with the tough task of rebuilding trust in the industry.
Sky News has learnt that Tracey McDermott, who quit the Financial Conduct Authority last year after failing to land the top job, will be among about 20 inaugural directors of UK Finance (UKF).
Ms McDermott, who is now a senior executive at Standard Chartered, will lead UKF’s work on fraud and financial crime detection and prevention.
Her name will be one of several notable appointees to UKF’s board as it tries to tackle many of the major social, economic and political challenges confronting the British banking sector.
Among the key issues that one of the UK’s most important industries is facing are the implications of Brexit, and structural reforms requiring big lenders to ring-fence their retail and investment banking arms.
Banks also face major challenges from growing cybercrime risks, the advent of new technologies and combating financial exclusion.
UKF is being chaired by Bob Wigley, a former member of the Court of the Bank of England, and run as CEO by ex-Santander UK and Barclays executive Stephen Jones.
It has been formed by merging six existing trade bodies, including the British Bankers’ Association (BBA), Council of Mortgage Lenders and Financial Fraud Action UK.
As a result, the BBA, which for many years administered the scandal-hit Libor interbank lending rate, will effectively cease to exist.The combined organisation will be one of the most influential private sector lobbying groups in Britain.
Although there are likely to be some cost savings from the amalgamation of the six trade associations, sources close to UKF said it would continue to carry out all of the work previously undertaken by the separate bodies.
According to a list of board members obtained by Sky News, individual directors such as Ms McDermott will be charged with overseeing different strands of its work.
Significantly, they will include Joanna Elson OBE, chief executive of the Money Advice Trust, who will provide a voice at the UKF boardroom table for issues relating to consumer protection and financial inclusion.
Other prominent directors will include: Jayne-Anne Gadhia, the Virgin Money boss, who will lead on diversity; Peter Smith, founder and CEO of Blockchain; Ashok Vaswani, who runs Barclays UK; Ian Stuart, HSBC’s UK chief executive; and Joe Garner, boss of Nationwide, who will oversee UKF’s work on mutuals.
In total, the new body will represent more than 300 members.
City figures regard the role of UKF as being especially important with Brexit looming in 2019.
There remains significant uncertainty about the scope of new trade arrangements between Britain and the European Union, the nature of which will have a profound effect on the UK banking sector
A spokeswoman for UKF declined to comment on its board line-up ahead of an announcement on Monday.
Source: Sky News