BoE deputy governor Hogg resigns

BoE

Bank of England deputy governor Charlotte Hogg has resigned over failing to disclose that her brother held an executive position at Barclays.

Hogg has been the BoE’s chief operating officer since she joined four years ago and was named deputy governor markets and banking on 1 March.

She recently faced a Treasury select committee over her promotion at which she disclosed her brother’s job – a strategy director at the investment banking arm of Barclays.

A report from the committee says her failure to comply with the bank’s code of conduct – which she was partially responsible for writing – fell “short of the very high standards required” for the position.

Hogg formalised her resignation yesterday in a letter to BoE governor Mark Carney and chair of court Anthony Habgood.

Hogg says: “Last week I offered you my resignation in recognition of the fact that I made a mistake in not declaring my brother’s work on the forms that the Bank requires. It has become clear to me that I should now insist.

“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.”

Taking full responsibility she explained how she had “unintentionally misled” the committee as to whether she had filed her 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.”

She insists she has not breached any confidentiality or misused any information, and has no financial relationship with her brother.

“I am utterly committed to the safeguarding of confidential information and the separation of a home and work life.”

However she says as public servants her integrity cannot be called into question and that “being sorry is not enough”.

Hogg adds: “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.

“I am therefore resigning from my position. I will, of course, work with you through any transition.”

In response, Carney says: “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.”

At the same time the bank has announced new reporting lines and an internal restructure.

Senior management responsibility for bank-wide risk management moves from the chief operating officer to deputy governor for prudential regulation Sam Woods, in his capacity as chair of the executive risk committee.

Head of compliance reports to the general counsel – who in turn reports to the governor – and the chair of the audit and risk committee, who is tasked with ensuring the independence of the Bank’s compliance function.

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.