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How Could Carney Appointment Affect PPI Claims?

Press release November 28, 2012 Economy

Consumer Finance Claims

Mark Carney has been named as the next Governor of the Bank of England – an appointment which has surprised many in the financial sector.

And with the Bank set to take on new powers under his governorship, his appointment could have an effect on how people can reclaim PPI payments.

The 47-year-old, presently governor of the Bank of Canada, is the first non-Briton appointed to the BoE’s top position in its 318-year history. He will take up the position in July next year, succeeding the present governor Sir Mervyn King.

Carney is highly regarded in Canada, having been credited with playing a major role in steering the country’s economy through the global financial crisis. Canada was the first G7 nation to have both its GDP and level of employment recover to pre-recession figures.

But Carney’s appointment is seen as something of a shock, partly because he had previously ruled himself out of contention when quizzed on the subject. The current BoE Deputy Governor, Paul Tucker, was expected by many to be chosen as King’s successor. However, Carney was the preferred choice of the Chancellor, George Osborne, who told Parliament he brings “the strong leadership and external experience the Bank needs” and has described him as “the outstanding central banker of his generation.”

As part of his role, Carney will oversee the process of the Financial Services Authority (FSA) being merged into the BoE. The Chancellor announced in 2010 that the FSA was to be abolished, with its powers being shared between the BoE and a number of other agencies, including the Financial Conduct Authority and the Prudential Regulatory Authority.

The FSA faced widespread criticism following its reluctance to take action against banks involved in the PPI scandal and it wasn’t until the Office of Fair Trading intervened that consumers began to see positive action taken, opening the door for millions of no win no fee PPI claims against banks.

The appointment of Carney has been welcomed across the political landscape, with shadow chancellor Ed Balls describing him as “an impressive character, well qualified to take on the role.”

Carney’s reputation has been built in his native country, where he first served as Deputy Governor of the Bank of Canada in 2003, before acting as senior associate deputy minister at the Canadian Department of Finance. He returned to the Bank of Canada as Governor in 2008 and is also the current chairman of the Financial Stability Board. He was once named by Time magazineas one of the 25 most influential people in the world.

Carney was educated at both Harvard and Oxford, receiving bachelor’s and master’s degrees in economics, before receiving a doctorate in 1995. Prior to joining the Bank of Canada, he spent 13 years with investment bank Goldman Sachs.

He is married to a Briton, Diana, with whom he has four children, and has indicated he will seek UK citizenship.