Much-publicised mistake costs senior figure her job

Failing to declare a possible conflict of interest this week cost the job of a senior figure at one of Britain’s biggest institutions.

Charlotte Hogg, who was poised to become a deputy governor at the Bank of England, agreed to resign after she failed to disclose that her brother was employed at Barclays.

Her mistake, which came to light as Ms Hogg prepared to face Parliament’s Treasury Committee earlier this month, breached the bank’s code of conduct.

The case throws into sharp relief the importance of organisations of all sizes ensuring that staff adhere to corporate governance requirements at all times.

In her resignation letter, Ms Hogg – who had been at the bank since 2013 and had even been tipped to take over from incumbent governor Mark Carney – apologised for her omission.

“It was an honest mistake: I have made no secret of my brother’s job – indeed it was I who informed the Treasury Select Committee of it, before my hearing,” she said.

“But I fully accept it was a mistake, made worse by the fact that my involvement in drafting the policy made it incumbent on me to get all my own declarations absolutely right.”

The Bank now intends to tighten up its code of conduct, which Ms Hogg had previously helped to shape.

Andrew Tyrie, the chairman of the Treasury Committee, said: “This is a regrettable business with no winners. Ms Hogg has acted in the best interest of the institution for which she has been working. This is welcome.

“It is also welcome that the Bank has responded immediately by announcing an internal review.”

 

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Nigel is the Managing Partner and Head of Litigation and Dispute Resolution in the London office of Mackrell Turner Garrett.