Charlotte Hogg has resigned from her position as deputy governor of the Bank of England after a report by MPs said her competence "falls short of the very high standards required to fulfil the… responsibilities" of deputy governor of the Bank of England.
In a statement today the Bank of England said it had accepted her resignation, after the Treasury Select Committee blasted her failure to disclose her brother's job at Barclays when she was appointed to her role as deputy governor for markets and banking – a potential conflict of interest.
She had been at the Bank of England since 2013, when she was appointed as its chief operating officer, but began her new role as deputy governor at the beginning of this month.
Last week Hogg made an apology after the chair of the Bank of England's supervisory body called her failure to inform him of her brother's job "very serious", and said it raised "major doubts" about the Bank's internal procedures.
In a letter to Andrew Tyrie, chairman of the Treasury Select Committee, Hogg said:
I should have formally declared my brother's role when I first joined the bank. I did not do so and I take full responsibility for this oversight.
But today the Committee said although it had said in a report published earlier this month Hogg had the "professional competence necessary" to fulfil her role, had it known what has since been disclosed, it would have "taken a different view".
"Professional competence for this role includes an ability to follow the rules, particularly those that one has had a hand in writing and enforcing; an understanding of why those rules are important; and an awareness of the risks arising from actual and potential conflicts of interest, and the perceptions of conflict," it said.
"Hogg’s oral and written evidence has given the Committee grounds for concern on all three counts. The committee considers that her professional competence falls short of the very high standards required to fulfil the additional responsibilities of deputy governor for markets and banking."
Today Tyrie said Hogg had acted "in the best interest of the institution for which she is working".
Mark Carney, the Bank's governor, added: “While I fully respect her decision taken in accordance with her view of what was the best for this institution, I deeply regret that Charlotte Hogg has chosen to resign from the Bank of England.”
Anthony Habgood, chair of the BoE's court of directors, paid tribute to Hogg, saying she had made a "huge contribution".
No one who knows her doubts her track record or her integrity. While Charlotte’s decision by any measure exceeds the standard that would be expected in the private sector or would be required under statute, it is understandable in the circumstances and she has taken it with the best interests of the Bank at heart.
Read more: Who exactly is Charlotte Hogg?
Charlotte Hogg resignation: Key points
What is this all about?
Having held a position as chief operating officer of the Bank of England since 2013, Hogg was named as its deputy governor for markets and banking at the end of February. But during questioning by the Treasury Select Committee, it emerged Hogg had failed to disclose her brother's senior role at Barclays.
What happened next?
Hogg wrote to Andrew Tyrie, chairman of the Treasury Select Committee, saying she took "full responsibility" for the oversight.
But this morning a report by the Committee her competence into question, saying her professional competence "falls short of the very high standards required to fulfil the additional responsibilities of deputy governor for markets and banking". That led to her resignation last night, which the Bank accepted today.
What did Hogg's letter say?
"As I have said, I am very sorry for that mistake. It was an honest mistake: I have made no secret of my brother’s job – indeed it was I who informed the Treasury Select Committee of it, before my hearing. But I fully accept it was a mistake, made worse by the fact that my involvement in drafting the policy made it incumbent on me to get all my own declarations absolutely right." Read the full letter here.
What did the Treasury Select Committee's report say?
"The incident raises some wider concerns. The Committee has warmly welcomed the progress made at the Bank to improve its transparency, accountability and governance. The Committee has, in other hearings, heard considerable evidence that this progress has been extensive. The recent reforms have been driven forward by the current Governor, since his appointment in 2013, and with welcome vigour. The Committee also welcomes the efforts of the recently reformed Court of the Bank to fulfil a role more akin to that of a proper Board. Some of the evidence heard by the Committee in connection with this appointment suggests that further reform by the Court may be needed. It will launch a review of Court’s progress in due course. The Committee recognises that Court’s task is far reaching, and may not be an easy one."
What did Mark Carney say?
“Since Charlotte joined the Bank almost four years ago, she has transformed its management and operations. Drawing on her extensive private sector experience and her unrelenting commitment to excellence, she has led a broad range of initiatives to build a more open and inclusive institution, to overhaul our IT systems, and to change fundamentally how the Bank develops, manages and rewards its dedicated public servants. Along the way, she has inspired countless colleagues at the Bank and attracted a new cohort of professionals to it. The combination of Charlotte’s unique skills and drive were exceptionally well All releases are available online at www.bankofengland.co.uk/news 2 suited to lead similar transformations of our markets and banking responsibilities, particularly given the growing importance of FinTech, operational excellence and the management of cyber risk.”