Bank of England deputy governor Charlotte Hogg resigns

Newly-appointed Bank of England deputy governor Charlotte Hogg resigned on Tuesday after MPs questioned her competence in failing to declare her brother worked at Barclays.

Having offered her resignation last week, but had it refused by the Bank's governing Court, Hogg wrote a further letter on Monday night, which was accepted on Tuesday.

In her letter Hogg insisted her resignation be accepted over the fact she "made a mistake" in not declaring her brother's role.

A report from the House of Commons Treasury committee questioned Hogg's professional competence due to her failure to follow the rules, as well as criticising the process of her promotion from chief operating officer to deputy governor.

Led by MP Andrew Tyrie, the committee noted that by failing to declare her brother’s position at Barclays, this meant that from the time she first was hired in July 2013 until 2 March 2017, she had not been compliant with the Bank’s code of conduct nor the "values and ethics policies" that existed prior to the code coming into effect.

The committee suggested that were it not for a questionnaire sent by the MPs, "the clear perceived and potential conflicts that would arise in her new role may never have come to light".

In her letter, Hogg said she was "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."

Hogg's declaration that “I do not anticipate that an actual or potential conflict will arise in the future” was, the committee said in its report, "a serious misjudgement" as a role on the BoE Prudential Regulation Committee would involve reviewing highly commercially-sensitive information and making supervisory judgements on specific high street banks, including Barclays.

"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.

"Ms 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," the report said.

Bank Governor Mark Carney said he "deeply" regretted that Hogg had chosen to resign, hailing her role in transforming the Bank's management and operations.

Anthony Habgood, chair of the 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.”