A serial chair of government-sponsored companies is to turn into the brand new head of Britain’s financial institution compensation scheme because the Bank of England prepares to widen its scope after final yr’s string of business crises.
Sky News has learnt that Lesley Cowley, who chaired the Driver and Vehicle Licensing Agency (DVLA) for practically a decade, is the frontrunner to take the identical put up on the Financial Services Compensation Scheme (FSCS).
City sources mentioned that her appointment could possibly be introduced inside days.
If confirmed, Mrs Cowley would change Marshall Bailey, who has served two three-year phrases on the helm of the FSCS.
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The statutory compensation scheme, which is funded by a levy on the business, exists to guard prospects of failed banks and insurers, amongst different regulated monetary providers.
It operates with a cap of £85,000 per buyer for every checking account they maintain with a distinct regulated lender.
Last yr, it emerged that the Bank of England was in search of to enhance reforms to the FSCS, together with measures to higher defend depositors at smaller banks.
The set off for the overview got here when Silicon Valley Bank collapsed within the US early in 2023, leaving shoppers of its UK arm nervous that they’d lose their deposits.
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Such an end result was in the end averted by HSBC’s emergency rescue of the British division.
Mrs Cowley additionally chairs Companies House, which is answerable for incorporating and dissolving restricted corporations within the UK, and Airport Coordination, which manages airport slots at 46 airports throughout the nation.
The Financial Conduct Authority and Prudential Regulation Authority – respectively the City and banking watchdogs – play a number one position within the FSCS recruitment course of.
The Treasury declined to touch upon Thursday.