A former banker and expert in financial reform has been appointed as new chair of the Financial Services Compensation Scheme (FSCS) succeeding Lawrence Churchill, who is stepping down after six years.
Marshall Bailey will take over at the lifeboat fund on 1 April, having been appointed jointly by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) and approved by HM Treasury.
Mr Bailey, currently a non-executive director at Chubb European Group and CIBC World Markets, has worked on issues around financial reform and conduct during his 20 year tenure in financial services.
During that time he held senior positions in a number of banks, including RBC Capital Markets and State Street Bank.
Most recently he served on the board of the government’s UK Financial Investments Limited (UKFI), which was created after the financial crisis to manage and dispose of the government’s shareholding in bailed out banks.
FCA executive director of strategy and competition Christopher Woolard, who chaired the selection panel, said: “We have conducted a thorough recruitment process to identify the most suitable person to become the next chair of the FSCS.
“Marshall Bailey was selected from a strong field of potential candidates by a panel comprising members of the PRC, FCA and FSCS boards. Marshall brings a wealth of experience from the financial services industry and we look forward to working with him in his new role at the FSCS.”
The FSCS is currently reviewing the way it is funded by the industry, in an attempt to lift the burden for advisers.
It has seen a spike in payouts in recent years stemming from bad practice in the pension space, especially around self-invested personal pensions, which maxed out the amounts it can recoup from pension advisers for the fourth consecutive year this year.
A new funding mechanism could see providers take on a bigger share of the overall cost.
The FSCS board oversees the conduct of the body. Its directors are appointed by the UK regulators although the scheme is run independently of those.
Mr Bailey said the FSCS was “vital to the trust we place in our financial system”.
He said: “I am delighted to be joining the FSCS as its new chair. The work previously done by Lawrence and the FSCS board has been excellent, and I thank them for the work they have done to provide a resilient platform through a difficult period.”
Mr Churchill added: “I have been proud to serve as Chair of FSCS over the last six years, during which time we have paid over £1.8bn in compensation to customers who have lost out and recovered £13.2bn from the estates of failed firms including those who failed during the financial crisis and subsequently. This includes the Icelandic banks and Bradford & Bingley.”