FCA chairman John Griffith-Jones said he was “looking forward to working” with the Banking Standards Review, which will initially be run by former Financial Times editor and chairman of the employers’ body of the Confederation of British Industry, Richard Lambert.
The member-funded body will interview banks’ non-executive directors each year and create annual updates on the behaviour of financial institutions.
“The team have done a thorough job which will give the industry and regulators much to consider as we seek to improve standards across the board,” Griffith-Jones said.
“Everyone is aware of the challenge to regain the trust of the public and that can only be done by working to the highest standards and displaying the appropriate behaviour at all times.”
The body was originally proposed by Lambert in a report he wrote in February which examined the need to restore public faith in the financial industry.
Earlier this week he called on banks to sign up to the body, after the six retail banks and one building society who commissioned his report backed his idea.
“It is essential that work gets underway immediately and the current momentum on setting up the new Banking Standards Review Council is maintained, in order to demonstrate to the public that the industry is fully committed to this initiative,” he said.
The body said its work to improve bank behaviour and competence will be based around a focus on “transparency and openness”.
Bank of England governor Mark Carney will sit on a panel that selects a permanent head for the body.
“I welcome this important industry-led initiative, and am pleased to support the establishment of the review,” he said. “I encourage all banks that operate in the UK, both domestic and foreign, to support this endeavour.”
“We need a financial system that is safe, fair and acts with integrity.”
