Conflict of interest – it starts at the top

“The Bank of England’s new deputy governor has admitted breaching the Bank’s guidelines after she failed to declare that her brother worked for Barclays.

In a letter to the Treasury select committee, Charlotte Hogg apologised for not formally disclosing that her brother was the bank’s director of group strategy, which could conflict with her work on the Prudential Regulation Committee (PRC).

The apology comes after Hogg, who has been touted as a possible successor to Mark Carney, the Bank’s governor, told the committee at a hearing last week that she always declared areas of conflicts of interests and was compliant with all of the Bank’s codes of conduct because she helped write them.

The PRC has direct responsibility for regulating banks, including Barclays.

In the letter, Hogg wrote: “As Barclays Bank plc is regulated by the PRA, under the Bank’s internal code of conduct and personal relationships policy, I should have formally declared my brother’s role when I first joined the Bank.

“I did not do so and I take full responsibility for this oversight. I have now added a full record of my brother’s role in the Bank’s HR systems.

“Regrettably, my oversight means that my oral evidence to the committee in this respect was not accurate. I write now to correct that evidence at the earliest opportunity and to place on record my sincere apologies to the committee.”