Andrew Bailey has been confirmed today as the new Governor of the Bank of England after three years as chief executive of the Financial Conduct Authority.

The search is now under way for a new chief executive of the FCA who will become the fourth chief executive of the FCA in five years.

The Treasury says that an interim chief executive will be appointed at the FCA "well ahead" of Mr Bailey's departure to ensure continuity until a permanent replacement can be found.

Mr Bailey has been appointed for an eight-year term and will receive a salary of £495,000.

A former chief executive of the Prudential Regulation Authority, he was appointed chief executive of the FCA by then Chancellor George Osborne in 2016.

Andrew Bailey will become Governor from 16 March succeeding Mark Carney, Chancellor Sajid Javid announced today.

Mr Javid said: "When we launched this process, we said we were looking for a leader of international standing with expertise across monetary, economic and regulatory matters. In Andrew Bailey that is who we have appointed. Andrew was the stand-out candidate in a competitive field.

"He is the right person to lead the Bank as we forge a new future outside the EU and level-up opportunity across the country."

Andrew Bailey said: "It is a tremendous honour to be chosen as Governor of the Bank of England and to have the opportunity to serve the people of the United Kingdom, particularly at such a critical time for the nation as we leave the European Union.

"I would like to pay tribute to my colleagues at the Financial Conduct Authority for their support during my time as chief executive and the excellent work they do."

The Treasury says that ensure a smooth transition, the current Governor, Mark Carney, and the Chancellor have agreed a short extension to Mr Carney’s term. He will now complete his term on 15 March.

Mark Carney said: "I am delighted to welcome Andrew Bailey back to the Bank as its next Governor. An extraordinary public servant, Andrew brings unparalleled experience, built over three decades of dedicated service across all policy areas of the Bank, and most recently as CEO of the FCA.

"Andrew is widely and deeply respected for his leadership managing the financial crisis, developing the new regulatory frameworks, and supporting financial innovation to better serve UK households and businesses."

Andrew Bailey will be the 121st Governor in the Bank’s 325 year history and the 9th to be appointed since the Bank’s nationalisation in 1946. 

The process for the recruitment of a permanent FCA chief executive will be run by HM Treasury and will follow the Government’s Principles of Public Appointments and Governance Code, as overseen by the Office for the Commissioner for Public Appointments, the Treasury said.

At the FCA Mr Bailey succeeded Tracey McDermott, who became interim chief executive after Martin Wheatley stepped down in September 2015.

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