Appointment of Liz Oakes to the Financial Policy Committee

This is a House of Commons Committee report.

Ninth Report of Session 2023–24

Author: Treasury Committee

Related inquiry: Appointment of Liz Oakes to the Financial Policy Committee

Date Published: 22 May 2024

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Contents

1 Introduction

1. Liz Oakes was appointed an external member of the Financial Policy Committee (FPC) by the Chancellor on 25 April 2024 and is due to start the role on 3 June 2024.1

2. We took evidence from Liz Oakes on 21 May 2024. She provided a full CV and answered our questionnaire prior to giving oral evidence. We thank her for her evidence, which has been published on the Treasury Committee website.

3. In this Report, we have considered the suitability of Liz Oakes against two criteria—whether she has the personal independence and appropriate professional competence to undertake the role of an external member of the FPC.

2 The appointment of Liz Oakes

Background on Liz Oakes

4. Ms Oakes joins the FPC following a long career in the financial services sector, focussed on payments. She has held a number of executive and board level roles in financial and professional services firms, including global positions leading strategy, market and product development. For example, from February 2021 to March 2023, she was Executive Vice President at Mastercard Send.

5. Her main outside interests are that she currently serves as an independent non-executive director on the boards of the e-commerce payment businesses of the private equity investor, Advent International. Specifically, she sits on the boards of Advent International Stargate SAS (a holding company) and Mangopay SA, both incorporated in Luxembourg. Advent International, has a majority shareholding in Mangopay, which handles online payments for a wide range of platforms, primarily in the EU.

Our evidence

6. In oral evidence, we questioned Ms Oakes about her personal suitability for the post and the UK’s financial stability. Topics covered during the session included:

  • Her appointment process and recusals to ensure independence;
  • Her shareholdings;
  • Potential conflicts of interest and her role on Advent Stargate International;
  • Her motivation for applying for the role;
  • The setting of the countercyclical capital buffer (CCyB) and its impact on bank lending;
  • Potential reform of other Financial Policy Committee (FPC)’s macroprudential tools
  • The recent performance of the FPC;
  • Her thoughts on current financial stability risk;
  • Financial stability risks from non-bank finance, including private equity and how to mitigate them;
  • Climate change and financial stability;
  • The need for public knowledge of the FPC;
  • Financial stability risks from current interest rates; and corporate and household lending;
  • Financial stability risks arising from public sector indebtedness;
  • Risks to financial stability arising from geo-politics, fraud and cyber-attacks and potential FPC response;
  • Russian financial sanctions;
  • Financial stability and market cleanliness;
  • The model for private equity;
  • Competition and risk in payment systems, including impact of large players such as Mastercard and Visa;
  • The impact of Artificial Intelligence and machine learning;
  • The likelihood of large-scale operational failure;
  • The future of cash;
  • Privacy and central bank digital currencies;
  • Her financial holdings;
  • The Prudential Regulation Authority’s proposals on the implementation of Basel 3.1.

Conclusion

7. We are satisfied that Liz Oakes has the appropriate professional competence and personal independence to undertake the role of external member of the Financial Policy Committee. We wish her every success.

8. However, we regret that Ms Oakes is unable to contribute to the Financial Policy Committee on payments, an area in which she has significant expertise. The Treasury and the Bank should consider how the appointment and the recusal processes works for future external appointments.

Formal Minutes

Tuesday 21 May 2024

Members present

Dame Harriett Baldwin, in the Chair

Dr Thérèse Coffey

Samantha Dixon

Dame Angela Eagle

Stephen Hammond

Danny Kruger

Draft Report (The appointment of Liz Oakes to the Financial Policy Committee), proposed by the Chair, brought up and read.

Ordered, That the Report be read a second time, paragraph by paragraph.

Paragraphs 1 to 8 read and agreed to.

Resolved, That the Report be the Ninth Report of the Committee to the House.

Ordered, That the Chair make the Report to the House.

Ordered, That embargoed copies of the Report be made available, in accordance with the provisions of Standing Order No. 134.

Adjournment

Adjourned till Wednesday 22 May at 2.00 pm.


Published written evidence

The following written evidence was received and can be viewed on the inquiry publications page of the Committee’s website.

APL numbers are generated by the evidence processing system and so may not be complete.

1 Liz Oakes (APL0001)

2 Liz Oakes (APL0002)


List of Reports from the Committee during the current Parliament

All publications from the Committee are available on the publications page of the Committee’s website.

Session 2023–24

Number

Title

Reference

1st

The digital pound: still a solution in search of a problem?

HC 215

2nd

Edinburgh Reforms One Year On: Has Anything Changed?

HC 221

3rd

Appointment of Nathanaël Benjamin to the Financial Policy Committee

HC 443

4th

The work of the Sub-Committee on Financial Services Regulations: January 2024

HC 496

5th

Quantitative Tightening

HC 219

6th

Sexism in the city

HC 240

7th

Appointment of Clare Lombardelli as Deputy Governor for Monetary Policy, Bank of England

HC 687

8th

SME Finance

HC 27

1st Special

The Digital Pound: A solution in search of a problem?: Government and Bank of England Response to the Committee’s First Report

HC 535

2nd Special

Edinburgh Reforms One Year On: Has Anything Changed? Government Response to the Committee’s Second Report

HC 585

3rd Special

Quantitative Tightening: Government, Bank of England and Debt Management Office Reponses to the Committee’s Fifth Report

HC 688

4th Special

Edinburgh Reforms One Year On: Has Anything Changed?: Further Government Response to the Committees Second Report Fourth

HC 723

5th Special

Sexism in the City: HM Treasury, Prudential Regulation Authority and Financial Conduct Authority Responses to the Committee’s Sixth Report

HC 764

Session 2022–23

Number

Title

Reference

1st

Future of financial services regulation

HC 141

2nd

Future Parliamentary scrutiny of financial services regulations

HC 394

3rd

The appointment of Dr Swati Dhingra to the Monetary Policy Committee

HC 460

4th

Jobs, growth and productivity after coronavirus

HC 139

5th

Appointment of Marjorie Ngwenya to the Prudential Regulation Committee

HC 461

6th

Appointment of David Roberts as Chair of Court, Bank of England

HC 784

7th

Re-appointment of Sir Dave Ramsden as Deputy Governor for Markets and Banking, Bank of England

HC 785

8th

Autumn Statement 2022 – Cost of living payments

HC 740

9th

Appointment of Ashley Alder as Chair of the Financial Conduct Authority

HC 786

10th

The work of the Sub-Committee on Financial Services Regulations

HC 952

11th

Fuel Duty: Fiscal forecast fiction

HC 783

12th

Appointment of Professor Randall Kroszner to the Financial Policy Committee

HC 1029

13th

Scam reimbursement: pushing for a better solution

HC 939

14th

The work of the Sub-Committee on Financial Services Regulations

HC 952-i

15th

Regulating Crypto

HC 615

16th

Tax Simplification

HC 723

17th

The appointment of Megan Greene to the Monetary Policy Committee

HC 1395

18th

The work of the Sub- Committee on Financial Services Regulations

HC 952-ii

19th

The venture capital market

HC 134

20th

Tax Reliefs

HC 723

1st Special

Defeating Putin: the development,implementation and impact of economic sanctions on Russia: Government Response to the Committee’s Twelfth Report of Session 2021–22

HC 321

2nd Special

Future of financial services regulation: responses to the Committee’s First Report

HC 690

3rd Special

Jobs, growth and productivity after coronavirus: Government response to the Committee’s Fourth Report

HC 861

4th Special

Autumn Statement 2022 – Cost of living payments: Government response to the Committee’s Eighth Report

HC 1166

5th Special

Fuel Duty: Fiscal forecast fiction: Government response to the Committee’s Eleventh Report

HC 1242

6th Special

Scam reimbursement: pushing for a better solution: Payment Systems Regulator’s response to the Committee’s Thirteenth Report

HC 1500

7th Special

Regulating Crypto: Government Response to the Committee’s Fifteenth Report

HC 1752

8th Special

Tax Reliefs: Government Response to the Committee’s Twentieth Report

HC 1875

9th Special

Venture Capital: Government Response to the Committee’s Nineteenth Report of Session 2022–23

HC 1876

Session 2021–22

Number

Title

Reference

1st

Tax after coronavirus: the Government’s response

HC 144

2nd

The appointment of Tanya Castell to the Prudential Regulation Committee

HC 308

3rd

The appointment of Carolyn Wilkins to the Financial Policy Committee

HC 307

4th

The Financial Conduct Authority’s Regulation of London Capital & Finance plc

HC 149

5th

The Future Framework for Regulation of Financial Services

HC 147

6th

Lessons from Greensill Capital

HC 151

7th

Appointment of Sarah Breeden to the Financial Policy Committee

HC 571

8th

The appointment of Dr Catherine L. Mann to the Monetary Policy Committee

HC 572

9th

The appointment of Professor David Miles to the Budget Responsibility Committee of the Office for Budget Responsibility

HC 966

10th

Autumn Budget and Spending Review 2021

HC 825

11th

Economic crime

HC 145

12th

Defeating Putin: the development, implementation and impact of economic sanctions on Russia

HC 1186

1st Special

Net Zero and the Future of Green Finance: Responses to the Committee’s Thirteenth Report of Session 2019–21

HC 576

2nd Special

The Financial Conduct Authority’s Regulation of London Capital & Finance plc: responses to the Committee’s Fourth Report of Session 2021–22

HC 700

3rd Special

Tax after coronavirus: response to the Committee’s First Report of Session 2021–22

HC 701

4th Special

The Future Framework for Regulation of Financial Services: Responses to the Committee’s Fifth Report

HC 709

5th Special

Lessons from Greensill Capital: Responses to the Committee’s Sixth Report of Session 2021–22

HC 723

6th Special

The appointment of Professor David Miles to the Budget Responsibility Committee of the Office for Budget Responsibility: Government response to the Committee’s Ninth Report

HC 1184

7th Special

Autumn Budget and Spending Review 2021: Government Response to the Committee’s Tenth Report

HC 1175

8th Special

Economic Crime: responses to the Committee’s Eleventh Report

HC 1261

Session 2019–21

Number

Title

Reference

1st

Appointment of Andrew Bailey as Governor of the Bank of England

HC 122

2nd

Economic impact of coronavirus: Gaps in support

HC 454

3rd

Appointment of Richard Hughes as the Chair of the Office for Budget Responsibility

HC 618

4th

Appointment of Jonathan Hall to the Financial Policy Committee

HC 621

5th

Reappointment of Andy Haldane to the Monetary Policy Committee

HC 620

6th

Reappointment of Professor Silvana Tenreyro to the Monetary Policy Committee

HC 619

7th

Appointment of Nikhil Rathi as Chief Executive of the Financial Conduct Authority

HC 622

8th

Economic impact of coronavirus: the challenges of recovery

HC 271

9th

The appointment of John Taylor to the Prudential Regulation Committee

HC 1132

10th

The appointment of Antony Jenkins to the Prudential Regulation Committee

HC 1157

11th

Economic impact of coronavirus: gaps in support and economic analysis

HC 882

12th

Tax after coronavirus

HC 664

13th

Net zero and the Future of Green Finance

HC 147

1st Special

IT failures in the financial services sector: Government and Regulators Responses to the Committee’s Second Report of Session 2019

HC 114

2nd Special

Economic Crime: Consumer View: Government and Regulators’ Responses to Committee’s Third Report of Session 2019

HC 91

3rd Special

Economic impact of coronavirus: Gaps in support: Government Response to the Committee’s Second Report

HC 662

4th Special

Economic impact of coronavirus: Gaps in support: Further Government Response

HC 749

5th Special

Economic impact of coronavirus: the challenges of recovery: Government Response to the Committee’s Eighth Report

HC 999

6th Special

Economic impact of coronavirus: gaps in support and economic analysis: Government Response to the Committee’s Eleventh Report

HC 1383