Published: Thu, March 16, 2017
Economy | By Melissa Porter

BoE's Hogg Resigns Over Failure To Declare Conflict Of Interest

BoE's Hogg Resigns Over Failure To Declare Conflict Of Interest

Following that Bank of England governor Mark Carney issued Hogg with a verbal warning after her admission.

Ms Hogg said she was very sorry for not declaring that her brother is a project manager in the strategy unit of Barclays' investment bank.

Anthony Habgood, chair of the Court, said: "No one who knows her doubts her track record or her integrity".

First, she had failed to comply with the code of conduct for almost four years despite plenty of procedural reminders that she had to do so.

George Osborne has claimed Charlotte Hogg may not have been forced out of her Bank of England job if she was an "older man".

Hogg had misled the committee, albeit inadvertently, the report said.

"Since Charlotte joined the Bank nearly four years ago, she has transformed its management and operations.The Bank today is stronger, more diverse, secure and effective in large part because of [her]", he added. It also risks leaving the BOE with no women on its Monetary Policy Committee after external member Kristin Forbes said she intends to leave at the end of June. MPs accepted Hogg's assurance that she and her brother exchanged gossip about their children rather than juicy, commercially sensitive information.

While being questioned about her promotion by MPs, she told them of her brother's role at Barclays. Second, she had been responsible for drafting and implementing the code, which was meant to show the Bank would adhere to standards of corporate governance at least as high as the institutions it was overseeing.

Ms Hogg, chief operating officer (COO) since 2013, took over as deputy governor for markets and banking at the start of this month, which includes responsibilities for bank supervision.

Andrew Tyrie's committee did not agree.

But a few days later it came to light that the first time she had mentioned her brother worked for Barclays was when filling out a questionnaire in preparation for her Treasury committee hearing.

The Bank said Ms Hogg, who has only been in position since 1 March, had voluntarily offered her resignation.

The committee also said that the incident with Ms Hogg raised some "wider concerns" about the bank's governance.

The Court has now commissioned a review which will be carried out by its non-executive directors to ensure adherence to the Code of Conduct at the most senior levels of the Bank.

A spokesman for Prime Minster Theresa May said the government respected Hogg's decision to step down. The panel said the episode raises wider concerns over the governance of the 322-year-old central bank, which faces multiple policy challenges as the United Kingdom heads toward its departure from the European Union.

The bank said senior management responsibility for risk management would shift to Sam Woods, deputy governor for prudential regulation. But there is clearly more to do.

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