The Treasury Committee, the influential House of Commons group of MPs, has backed the appointment of new FCA chair Ashely Alder who will take over at the FCA from February.
In its report today on the appointment, the committee wished Mr Alder “every success” in the new role.
The committee said it was, “satisfied that Mr Alder, the CEO of Hong Kong’s Securities and Futures Commission (SFC), has the appropriate professional competence and personal independence for the role.”
At a pre-appointment Treasury Committee meeting held yesterday chair Harriet Baldwin MP quizzed Mr Alder on his experience and asked if he felt he was familiar enough with the UK financial services sector.
Today the committee said that Mr Alder’s “apparent inexperience” of consumer regulation and UK financial services suggests it will be, “important that his knowledge of these areas be developed quickly, and that he will want to take time to familiarise himself with legacy issues from the global financial crisis.”
The committee added that: “Given Mr Alder is moving from a jurisdiction of extensive state control in Hong Kong, the Committee outlines that he will need to demonstrate independence while increasing his knowledge of the way Parliament scrutinises the FCA in the UK’s free and democratic society.”
Mr Alder told MPs that he had much international experience and was familiar with the UK financial services sector. He also has extensive markets and international financial services experience in Hong Kong where he is a regulator.
Mr Alder’s appointment as new FCA chair was announced in July. He will replace Charles Randell who is stepping down from his five year contract a year early.
Mr Alder’s appointment has been made by the Treasury which is responsible for selecting the FCA chair appointment.
The FCA has faced criticism in recent years over its handling of a number of financial failures including the £236m London Capital & Finance mini-bond fiasco and the BSPS pension transfer scandal. It has apologised for the mistakes.
Mr Alder has been CEO of the SFC in Hong Kong since 2011 and was due to end his current contract in September 2023 but will be leaving early to take up the FCA role.
He also chairs the board of the International Organization of Securities Commissions (IOSCO) and sits on the Financial Stability Board’s Plenary and its Steering Committee.
He began his career as a lawyer in London in 1984 and practised in Hong Kong for more than 20 years. He was executive director of the SFC’s Corporate Finance Division from 2001 to 2004, before returning to private practice at Herbert Smith LLP, a law firm, as head of Asia.
He attained his Bachelor of Laws degree from the University of London in 1982 and graduated from the University of Cambridge with a Master of Laws degree in 1983.
He is a member of the Financial Leaders Forum, a Council Member of the Treasury Markets Association and Vice President of The Hong Kong Institute of Bankers.
Mr Alder is expected to take up his role as FCA chair by February and has accepted a five-year term.
