Finance News

Charlotte Hogg resigns as BoE Deputy Governor

14th March 2017
"I also, in the course of a long hearing, unintentionally misled the committee as to whether I had filed my brother’s job on the correct forms at the Bank."

Charlotte Hogg has resigned from her post as Deputy Governor of the Bank of England just thirteen days into the role, after failing to disclose that her brother works for Barclays bank.

In her resignation letter, Hogg said: "I made a mistake in not declaring my brother’s work on the forms that the Bank requires.

"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. I also, in the course of a long hearing, unintentionally misled the committee as to whether I had filed my brother’s job on the correct forms at the Bank. I would like to repeat my apologies for that, and to make clear that the responsibility for all those errors is mine alone.

"I have not shared confidential information or misused it in any way. I do not have any financial relationship with my brother and I am utterly committed to the safeguarding of confidential information and the separation of a home and work life.

"However, I recognise that being sorry is not enough. We, as public servants, should not merely meet but exceed the standards we expect of others. Failure to do so risks undermining the public’s trust in us, something we cannot let happen. Furthermore, my integrity has, I believe, never been questioned throughout my career. I cannot allow that to change now."

In a statement, The Bank of England says it has "with great regret" accepted the resignation of Charlotte Hogg.

Anthony Habgood, Chair of Court, said: “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.”
Mark Carney, Governor of the Bank, 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.

“The Bank of England today is stronger, more diverse, secure and effective in large part because of Charlotte Hogg.  We will do everything we can to honour her work for the people of the United Kingdom by building on her contributions.”
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.

The review will examine the extent to which the changes to reporting lines and internal structures outlined above are adequate, and what the Bank should do to ensure full and timely compliance amongst senior members of the Bank.

The Bank is also reconfiguring reporting lines and internal structures in order to safeguard more effectively the governance of its Code of Conduct, compliance and disciplinary processes.
Senior Management Responsibility for Bank-wide risk management will move from the Chief Operating Officer to Deputy Governor for Prudential Regulation Sam Woods in his capacity as Chair of the Executive Risk Committee. Mr Woods in turn reports to Court’s Audit and Risk Committee on risk matters.

The Head of Compliance will report to the General Counsel (who in turn reports to the Governor) and the Chair of ARCO, who is tasked with ensuring the independence of the Bank’s compliance function.

Finally, senior Management Responsibility for the Code of Conduct will rest with the General Counsel who will ensure the policies under the Code are fully understood and adhered to, and will report on that to the Chair of ARCO.

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