MPC's Miles will quit FSA board role

NEW Monetary Policy Committee (MPC) member David Miles yesterday bowed to growing pressure over a possible conflict of interest with his post as non-executive director of the Financial Services Authority (FSA) and said he would resign from the city watchdog &ndash; eight months before he was due to stand down.<br /><br />Although Miles saw no conflicts of interest, the Treasury committee last week highlighted a potential conflict between Miles&rsquo; FSA role and his non-executive MPC position, asking both institutions to consider the potential conflicts which arise from cross-membership beyond deputy governor level.<br /><br />Lord Turner, chairman of the FSA, wrote to the Treasury committee chairman John McFall, saying: &ldquo;The actual potential for conflict in the case of Professor Miles is however extremely low. Indeed, I find it almost impossible to envisage a situation where a serious conflict could arise.&rdquo;<br /><br />Turner added that there was more of a conflict where FSA board members were executives at financial services firms.<br /><br />Mervyn King, governor of the Bank of England, agreed. &ldquo;If conflicts are not thought to arise at an executive level, they surely do not arise at a non-executive level,&rdquo; he wrote.<br /><br />But Miles said that reports of the committee&rsquo;s concern could lead people to think that conflicts were possible and question his independence.