Appointment details

Bank of England - Financial Policy Committee External Member

Summary

• Organisation: Bank of England - Financial Policy Committee
• Sponsor department: HM Treasury
• Location: Various
• Sectors: Finance and Audit
• Skills: Business, Regulation
• Number of vacancies: 1
• Time commitment: 92 day(s) per annum
• Remuneration: £101700
• Length of term: 3 Years
• Application deadline: 10am on 13 January 2025

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Timeline for this appointment

1. Opening date

   25 November 2024

2. Application deadline

   10am on 13 January 2025

3. Sifting date

   17 February 2025

4. Interviews expected to end on

   31 March 2025

Timeline dates are only an estimate and can change

About the appointment

Introduction from the Chair

Thank you for your interest in becoming an external member of the Bank of England’s Financial Policy Committee (FPC).

The FPC is the Bank’s macroprudential authority and plays a central role in the Bank’s work on financial stability. It identifies and monitors systemic risks that threaten the resilience of the UK financial system as a whole, and takes policy actions to remove or reduce those risks. An example of such a risk is unsustainable levels of debt and credit growth. Subject to meeting its primary focus on financial stability, the FPC also has a secondary objective to support the economic policy of the government.

The coming period will see the FPC – along with the Bank’s other policy committees – continue to deal with a wide range of issues. 

Alongside its assessment of the risk environment – including monitoring the impact of the tightening of financial conditions on households and businesses – the FPC has prioritised four initiatives over the next three years: further improving risk identification in, and the functioning of, market-based finance; continuing to identify, assess and respond to structural changes and new risks in the financial system and the economy; responding to lessons learned for macroprudential policy from the FPC’s experience in periods of stress; and continuing to improve macroprudential oversight of operational resilience, in light of its growing importance to financial stability.

This important programme of work makes it all the more important that the FPC benefits from the judgement and expertise of its external members. The knowledge and analytical rigour that these members bring to bear on the committee’s work, along with the independent challenge they provide, ensure that the FPC’s decision-making is robust and effective.

If you have the skills and experience that the FPC requires and are motivated by actively contributing to maintaining the stability of the UK financial system, then I encourage you to pursue this opportunity and wish you every success in your application.

Andrew Bailey

Governor of the Bank of England and Chair of the Financial Policy Committee

Appointment description

This is a high-profile and influential role, selected personally by the Chancellor of the Exchequer so that the Financial Policy Committee benefits from wider expertise beyond the Bank’s own, and to provide constructive challenge during deliberations.  The Chancellor seeks to ensure that the committee showcases an appropriate balance of different backgrounds and is keen to increase the committee’s diversity. External members are independent – they do not represent or lobby for individual groups, interests, or sectors. 

The role entails a part-time commitment of an average 20 to 30 days a quarter, though actual experience can vary considerably. Members are appointed for a three-year term. There is the possibility of reappointment at the end of the term; external members can serve a maximum of two terms. There is no automatic presumption of reappointment.

On taking up their post, external members receive support from a dedicated unit of officials within the Bank of England. They handle both logistical and policy issues, such as supporting members to prepare speeches.  

Organisation description

The Bank of England

The Bank of England is the central bank of the United Kingdom. It exists to protect monetary and financial stability. The Bank is a diverse organisation, proud of its inclusive culture. It focuses on inclusion to enhance diversity of thought, looking at financial stability risks through the widest range of perspectives.

The Financial Policy Committee 

The Financial Policy Committee was established by the Financial Services Act 2012. The committee supports the Bank’s financial stability objective by enhancing the resilience of the UK financial system. It identifies, monitors, and takes action to reduce systemic risks. The committee also has a secondary objective to support the government’s economic policy.

The Financial Policy Committee has wide-ranging powers to make recommendations, including to HM Treasury. It can direct the Prudential Regulation Authority and the Financial Conduct Authority to take particular actions to address systemic risks.

Meetings

The Financial Policy Committee usually holds a quarterly series of meetings in March, June, September and November with 6-8 meetings each time. Each round begins with around two weeks of briefing meetings, when staff from the Bank of England and Financial Conduct Authority brief the committee on economic developments. Members receive all the latest data and cutting-edge analysis of financial trends and regulatory matters. These conclude with policy decision meetings, when the committee makes its judgements and may exercise its formal powers. 

The committee aims to set policy by consensus but will vote if a consensus cannot be reached.

Meetings normally take place at the Bank’s head office in Threadneedle Street in the City of London. Meetings are usually hybrid, with most members attending in person at the Bank’s head office and other members joining remotely.

Public communications

By law, the Financial Policy Committee must explain its thinking and decisions publicly in writing. A record of FPC meetings is normally published two weeks after policy-setting meetings. The record gives a full account of the policy discussion, including any differences of view and votes.

The committee explains its actions regularly to parliamentary committees, particularly the House of Commons Treasury Committee. Committee members are also expected to speak to audiences throughout the country to explain the committee’s views and decisions.

In addition to the records, the Financial Policy Committee publishes a Financial Stability Report twice a year. The report assesses the strengths and weaknesses of the UK financial system and explains the committee’s outlook for future financial stability. The report also summarises the committee’s actions since the previous report and assesses how those actions have contributed to the committee’s objectives.

Board composition

Executive Members

• Andrew Bailey - Governor
• Sir Dave Ramsden - Deputy Governor Markets and Banking
• Sam Woods - Deputy Governor for Prudential Regulation
• Sarah Breeden - Deputy Governor Financial Stability
• Clare Lombardelli - Deputy Governor Monetary Policy
• Nathanaël Benjamin - Executive Director for Financial Stability Strategy and Risk

External Members

• Dame Colette Bowe
• Jonathan Hall
• Randall Kroszner
• Liz Oakes
• Carolyn Wilkins

Ex-Officio Members 

• Nikhil Rathi - CEO Financial Conduct Authority
• Gwyneth Nurse - HM Treasury Non-Voting Member

For further information about the work and membership of the Financial Policy Committee please see the Bank of England website. 

Person specification

Essential criteria

All criteria will be assessed at both sifting and interview stages. In the event that we receive a large number of applications, we will sift based on the lead criterion only: significant understanding of the financial sector.

Significant understanding of the financial sector. Candidates must have senior-level experience in the financial sector and must be recognised as a leader in their profession. Breadth and holistic experience are encouraged. This may include, but is not limited to, experience in the fields of retail banking, financial markets, and/or the application of emerging technology such as artificial intelligence (AI) within the financial sector.

Deep understanding of financial stability risks. Candidates must be able to critically evaluate complex information about the full breadth of the financial sector to reach policy judgements. They must understand the key financial sector developments of the moment and their implications for the stability of the UK’s financial system. 

Solid understanding of economics. Candidates must be able to demonstrate that they can consider the economic factors in the committee’s deliberations. Candidates should demonstrate that they have used their economic knowledge in areas related to financial policy or macroeconomic issues.

Independence of thought. Candidates must be able to exert influence within the Bank and in wider external policy debate. They must provide robust challenge whilst working closely and constructively with fellow members.

Excellent interpersonal and communication skills. Candidates must be able to defend decisions and communicate externally with complete credibility. Candidates must make a strong contribution to the committee’s communications explaining its decision (including for example to Parliament and the public).

Undisputed integrity and standing. Candidates must maintain discretion and engender trust. They must, in good faith, abide by any constraints regarding conflicts of interest.

Application and selection process

How to apply

In order to apply you will need to create an account or sign in.

Once you are logged into your account, click on 'apply for this role' and follow the on-screen instructions. To apply, all candidates are required to provide:

• a Curriculum Vitae (CV)
• a supporting statement
• equality information
• information relating to any outside interests or reputational issues

You will need to balance any other activities with the need to show sufficient independence in the role that you are applying for. This may have an impact on other roles you can hold and, as such, it is important that you make clear any other commitments you have or are likely to undertake. If you believe you may have a potential conflict of interest please describe it in the form that appears as you progress your application

We will ask you to check and confirm your personal details to ensure your application is accurate.

You will also have the opportunity to make a reasonable adjustment request or apply under the Disability Confident scheme before you submit your application.

Overview of the application process

Public appointments are made on merit following a fair and open competition process which is conducted in accordance with the principles of the Governance Code for Public Appointments. We will deal with your application as quickly as possible and will keep you informed at key stages. We aim to conclude the appointment process within three months of the deadline for applications – this is in accordance with the Governance Code.

The assessment process

1. Ministers are responsible and accountable to Parliament for the public appointments made within their department. As a result, they must be consulted at every stage of the appointments process.

2. An Advisory Assessment Panel (“Panel”) is appointed by Ministers to assist them in their decision making. The role of the Panel is to decide, objectively, which candidates meet the eligibility criteria for the role.

3. At the shortlisting meeting the Panel will assess applications against the eligibility criteria and decide which candidates have best met the criteria, who should be recommended for interview. Ministers will then be consulted on the Panel’s recommended shortlist. If you have applied under the Disability Confident Scheme and you meet all the essential criteria, then you will also be invited for an interview.

4. Once the shortlist has been agreed by Ministers, you will be advised (by e-mail) whether you have been shortlisted. Those shortlisted will be invited to an interview.

5. The Bank and HM Treasury will then investigate conflicts of interest. If shortlisted, you will be invited to complete a further conflicts form. Potential conflicts will be explored at interview.

6. The Panel will meet again to interview candidates and determine who is appointable to the role. The Panel may invite you to make a brief presentation at the start of the interview and will go on to question you about your skills and experience, including asking specific questions to assess whether you meet the criteria set out for the post. The Panel will also explore with you any potential conflicts of interest or any other issues arising from your personal and professional history which may impact on an appointment decision.

7. Details of the panel’s assessment of interviewed candidates are provided to Ministers, including whether they have judged a candidate to be appointable to the role. It is then for Ministers to determine merit and decide who should be appointed. In some circumstances, Ministers may choose not to appoint any candidates and re-run the competition.

8. Ministers may choose to meet with candidates before deciding the outcome. Candidates should therefore be prepared for a short time gap between interview and a final appointment decision being made. Candidates who have been interviewed will be kept informed of progress.

9. Once the decision on the appointment has been made, interviewed candidates will be advised of the outcome of their application, including whom they may approach for feedback.

10. Successful candidates will be issued with their Terms & Conditions and a letter of appointment should they agree to take up the position.

11. The successful candidate should be prepared to be invited by the Treasury Committee to attend a hearing as part of their Pre-Commencement Scrutiny.

Further information about appointments, including tips on applying, can be found on our guidance pages on gov.uk.

Advisory Assessment Panel (AAP)

The Advisory Assessment Panel will consist of:

Gwyneth Nurse (Chair) – Director General, Financial Services – HM Treasury

Jonathan Hall – External Member – Financial Policy Committee

Sir Douglas Flint – Chairman, abrdn – Independent Panel Member

Advisory Assessment Panels (AAP) are chosen by ministers to assist them in their decision-making. These include a departmental official and an independent member. For competitions recruiting non-executive members of a board (apart from the Chair), the panel will usually include a representative from the public body concerned.

AAPs perform a number of functions, including agreeing an assessment strategy with ministers, undertaking sifting, carrying out interviews in line with the advertised criteria and deciding objectively who meets the published selection criteria for the role before recommending to ministers which candidates they find appointable. It is then for the minister to decide who to appoint to the role.

Eligibility criteria

External members of the Financial Policy Committee are not required to be UK residents or citizens. They must have the right to work in the UK. Under the Bank of England Act 1998, a person is disqualified from being an external member of the FPC if they are (a) a minister of the Crown; or (b) serving in a government department in employment in respect of which remuneration is payable out of money provided by Parliament.

In general, you should have the right to work in the UK to be eligible to apply for a public appointment.

There are a small number of specialist roles that are not open to non-British citizens. Any nationality requirements will be specified in the vacancy details.

The Government expects all holders of public office to work to the highest personal and professional standards. 

You cannot be considered for a public appointment if:

• you are disqualified from acting as a company director  (under the Company Directors Disqualification Act 1986);

• have an unspent conviction on your criminal record;

• your estate has been sequestrated in Scotland or you enter into a debt arrangement programme under Part 1 of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) as the debtor or have, under Scots law, granted a trust deed for creditors.

When you apply, you should declare if:

• you are, or have been, bankrupt or you have made an arrangement with a creditor at any point, including the dates of this. 

• you are subject to a current police investigation.

You must inform the sponsor department if, during the application process, your circumstances change in respect of any of the above points. 

When you apply you should also declare any relevant interests, highlighting any that you think may call into question your ability to properly discharge the responsibilities of the role you are applying for. You should also declare any other matters which may mean you may not be able to meet the requirements of the Code of Conduct of Board Members (see Outside interests and reputational issues section below)

If you need further advice, please contact HM Treasury’s Public Appointments Officer by emailing

PublicAppointments-HMT@hmtreasury.gov.uk.

Security clearance

The successful candidate will be required to undertake Baseline Personnel Security Standard checks in line with the Civil Service guidelines. Additional Security Clearance may also be required for certain roles. External members of the Financial Policy Committee must have clearance at the Security Check (SC) level. 

However, where this applies, candidates will be notified during the appointment process. 

Further information on National Security Vetting can be found on the Gov.uk website here.

Additional information for candidates

Equality and diversity

We encourage applications from talented individuals from all backgrounds and across the whole of the United Kingdom. Boards of public bodies are most effective when they reflect the diversity of views of the society they serve.

We collect data about applicants’ characteristics and backgrounds, including information about people’s educational and professional backgrounds, so that we can make sure we are attracting a broad range of people to these roles and that our selection processes are fair for everyone. Without this information, it makes it difficult to see if our outreach is working, if the application process is having an unfair impact on certain groups and whether changes are making a positive difference.

When you submit your application, your responses are collected by the Cabinet Office and the government department(s) managing your application. The data is used to produce management information about the diversity of applicants. You can select “prefer not to say” to any question you do not wish to answer. The information you provide will not be seen by the Advisory Assessment Panel who review applications against the advertised criteria and conduct interviews.

Disability confident

We are a member of the Government’s Disability Confident scheme. We use the Disability Confident scheme symbol, along with other like-minded employers, to show our commitment to good practice in employing people with a disability. The scheme helps recruit and retain disabled people. As part of implementing the scheme, we guarantee an interview for anyone with a disability whose application meets the essential criteria for the role, set out in the advert, and who has asked that their application is considered under the scheme. Indicating that you wish your application to be considered under the scheme will in no way prejudice your application. By ‘essential criteria', we mean that you must provide evidence which demonstrates that you meet the level of competence required under each of the essential criteria, as set out in the job-advert. When you apply you will have the opportunity to select if you would like your application considered under this scheme.

Reasonable adjustments

We are committed to making reasonable adjustments to make sure applicants with disabilities, physical or mental health conditions, or other needs are not substantially disadvantaged when applying for public appointments. This can include changing the recruitment process to enable people who wish to apply to do so.

Some examples of common changes are:

• ensuring that application forms are available in different or accessible formats;
• making adaptations to interview locations;
• allowing candidates to present their skills and experience in a different way;
• giving additional detailed information on the selection / interview process in advance to allow candidates time to prepare themselves;
• allowing support workers, for example sign language interpreters;
• making provision for support animals to attend.

When you apply you will have the opportunity to request reasonable adjustments to the application process.

Principles of public life

The Seven Principles of Public Life (also known as the Nolan Principles) apply to anyone who works as a public office-holder.

1. Selflessness

Holders of public office should act solely in terms of the public interest.

2. Integrity

Holders of public office must avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence them in their work. They should not act or take decisions in order to gain financial or other material benefits for themselves, their family, or their friends. They must declare and resolve any interests and relationships.

3. Objectivity

Holders of public office must act and take decisions impartially, fairly and on merit, using the best evidence and without discrimination or bias.

4. Accountability

Holders of public office are accountable to the public for their decisions and actions and must submit themselves to the scrutiny necessary to ensure this.

5. Openness

Holders of public office should act and take decisions in an open and transparent manner. Information should not be withheld from the public unless there are clear and lawful reasons for so doing.

6. Honesty

Holders of public office should be truthful.

7. Leadership

Holders of public office should exhibit these principles in their own behaviour and treat others with respect. They should actively promote and robustly support the principles and challenge poor behaviour wherever it occurs.

Code of conduct for board members

For the period of the appointment and during the three-month period afterwards, committee members are bound by the Bank’s conflicts of interest code. This covers potential conflicts on appointment as well as subsequently and must abide by the Bank’s rules on personal financial transactions as well as its general code of business ethics (Our Code) and guidance on external communications.

The Government expects all holders of public office to work to the highest personal and professional standards. In support of this, all non-executive board members of UK public bodies must abide by the principles set out in the Code of Conduct for Board Members of Public Bodies. The Code sets out the standards expected from those who serve on the boards of UK public bodies and will form part of your terms and conditions of appointment.

Management of outside interests and consideration of reputational issues

Holders of public office are expected to adhere and uphold the Seven Principles of Public Life and the Code of Conduct for Board Members of Public Bodies. Before you apply you should consider carefully: 

• any outside interests that you may have, such as shares you may hold in a company providing services to government; 
• any possible reputational issues arising from your past actions or public statements that you have made; 
• and/or - any political roles you hold or political campaigns you have supported; 

which may call into question your ability to do the role you are applying for.

You will need to answer relevant questions in relation to these points when making an application. Many conflicts of interest can be satisfactorily resolved and declaring a potential conflict does not prevent you from being interviewed. If you are shortlisted for an interview, the panel will discuss any potential conflicts with you during that interview, including any proposals you may have to mitigate them and record that in their advice to ministers. Alongside your own declaration, we will conduct appropriate checks, as part of which we will consider anything in the public domain related to your conduct or professional capacity. This may include searches of previous public statements and social media, blogs or any other publicly available information. The successful candidate(s) may be required to give up any conflicting interests and their other business and financial interests may be published in line with organisational policies. 

Details of declared political activity will be published when the appointment is announced, as required by the Governance Code (political activity is not a bar to appointment, but must be declared).

Status of appointment

As this is an office holder appointment, you will not become a member of the Civil Service. You will not be subject to the provisions of employment law.

Appointment and tenure of office

Appointments are for the term set out in this advert, with the possibility of re-appointment for a further term, at the discretion of Ministers.  Any re-appointment is subject to satisfactory annual appraisals of performance during the first term in the post. There is no automatic presumption of reappointment; each case should be considered on its own merits, taking into account a number of factors including, but not restricted to, the diversity of the current board and its balance of skills and experience. In most cases, the total time served in post will not exceed more than two terms or ten years in any one post. 

Remuneration, allowances and abatement

The Bank’s Remuneration Committee will review external members’ compensation annually. In 2023/24, the external members of the Financial Policy Committee were each paid at a rate of £101,700 per annum.

Remuneration for this role is treated as employment income and will be subject to tax and National Insurance contributions, both of which will be deducted at source under PAYE before you are paid.

In addition, members may be eligible for reimbursement of reasonable expenses which are properly and necessarily incurred on official business in accordance with the Bank's travel and expenses policy. External members’ expenses are published. These payments are taxable as earnings and will be subject to tax and National Insurance, both of which will be deducted at source under PAYE before you are paid.

Pension and redundancy

This is an office holder appointment and does not attract any benefits under any Civil Service Pension Scheme. You will not be eligible for redundancy pay as you are not an employee. No other arrangements have been made for compensation upon the end of your term of appointment because an office holder who is appointed for a limited duration would have no expectation of serving beyond that period.

Application feedback

We will notify you of the status of your application. We regret that we are only able to offer detailed feedback to candidates who have been unsuccessful at the interview stage.

How to complain

We aim to process all applications as quickly as possible and to treat all applicants with courtesy.

Please contact the HM Treasury’s Public Appointments Officer in the first instance if you would like to make a complaint regarding your application, by emailing PublicAppointments-HMT@hmtreasury.gov.uk. They will acknowledge your complaint upon receipt and respond within 15 working days.

Data protection

The Cabinet Office will use your data in line with our privacy policy.

HM Treasury Public Appointments: Privacy Notice is attached.

Contact details

If you have any questions about your application please do not hesitate to contact HM Treasury’s Public Appointments Officer by email at  PublicAppointments-HMT@hmtreasury.gov.uk

Attachments

• Privacy Notice - HM Treasury