Rachel Reeves has kicked off the race for Britain’s next banking regulator and is calling on leading financiers to put themselves forward as candidates.
Sky News can reveal that the Chancellor has officially launched a search for the next chief executive of the Prudential Regulatory Authority (PRA), which sits within the Bank of England.
In a recruitment advert released on Friday, the Treasury said “senior executive experience in a major bank, insurer or other financial institution” was one of two “desirable criteria” for possible appointment.
The government is looking for a director general for five years, which corresponds to the mandate of the boss of the Financial Conduct Authority (FCA), Nikhil Rathi.
Sam Woods, who will leave office in June next year, served two five-year terms.
His successor will earn £314,000 a year, according to the recruitment advert, which is roughly the same as Mr Woods’ salary.
Last month, Sky News revealed that Ms Reeves was keen to recruit a strong outsider to lead the PRA, with Katharine Braddick, a senior Barclays executive who previously worked at the Treasury, among the expected contenders.
The wording of the job specification may increase the chances of appointment of an internal candidate such as David Bailey, executive director of prudential policy at the Bank of England.
Ms Reeves’ desire for an outsider with industry experience is part of a wider push for Britain’s economic watchdogs to cut red tape and reorient towards growth-oriented policies.
A Treasury insider said the chancellor saw the recruitment process for the PRA chief executive as a key part of the government’s drive to revive economic growth.
Next month she will present her budget, a fiscal event on which the government’s economic credibility will likely rest.
Candidates to replace Mr Woods are expected to be interviewed in the new year, with a nomination likely by the spring.
Mr Woods is seen as a potential candidate to succeed Andrew Bailey when the Bank of England governor’s term expires in 2028, although it is unclear whether he is seeking the post.
As CEO of the PRA, Mr Woods is also deputy governor of the Bank of England, a member of the Banking Court and a director of the FCA.
The chancellor has already shown her willingness to recruit outsiders to fill senior positions at the Treasury, appointing Bank of America investment banking veteran Jim O’Neil as second permanent Treasury secretary earlier this year.
Mr O’Neil had also headed UK Financial Investments, the agency set up to manage taxpayers’ stakes in bailed-out British banks.
The Treasury declined to comment further.