The businessman who bought Northern Rock and turned Virgin Money into a high street competitor is the government’s choice to run the Financial Reporting Council, the body that oversees the auditors and accountants of every UK business that relies on it.
Business Secretary Peter Kyle has nominated Dame Jayne-Anne Gadhia DBE CVO as his preferred chair of the FRC, who will take over from Sir Jan du Plessis when he steps down on 30 September.
For business owners, the appointment is more important than the summary suggests. The FRC sets the standards behind a company’s accounts and audits, the numbers by which creditors, investors and trading partners decide whether to support a business. It has shown sharp teeth in recent years, charging audit firms a record £48m for failings at Carrillion and London Capital & Finance.
Dame Jayne-Anne comes with a CV that straddles both sides of the regulatory fence. A chartered accountant by training, he led Virgin Money from 2007 to 2018, overseeing the acquisition of Northern Rock and the listing of the merged entity. Since then he has been an innovator and marketer in fintech, giving him rare first-hand knowledge of what the principles sound like from the small end of the market.
He currently chairs Moneyfarm, OVO and Shakespeare’s Globe, serves as Lead NED at HMRC and Senior Independent Director at Tate, sits on the boards of PRA Group and Innovo Group, and advises SumUp. She also spent five years as the government’s Champion for Women in Finance, following her review that led to the Women in Finance Charter, now signed by over 400 firms.
Mr Kyle said: “Dame Jayne-Anne Gadhia has a proven track record of driving growth and championing high standards in the organizations she leads, as well as exceptional experience in financial services.
“He is well placed to lead the FRC at this important time and I look forward to working with him to boost confidence in British businesses.”
Dame Jayne-Anne said: “I am honored to be appointed Chair of the FRC at such an important time for society and the UK economy. Strong corporate governance, high quality reporting and reliable auditing are not abstract regulatory objectives – the foundations that grow businesses, investors are committed and public confidence is maintained. The FRC has acted to raise the standard of the latest work ethics and modern developments and new rules that look forward to modern practice. Richard and the whole team build on that progress.”
Inheriting a regulator who has worked to establish himself as a more focused, transparent and balanced person under Sir Jan, small firms will hope to continue at a time when 96 per cent of businesses say regulators are creating unnecessary problems for their industries.
Richard Moriarty, chief executive of the FRC, said: “I am delighted with Dame Jayne-Anne’s appointment and look forward to working with her. Her unique experience, deep understanding of what it takes to build and lead institutions that inspire public trust, and her commitment to the role the FRC can play in supporting our economy make her well suited to lead our Board.”
His appointment follows an open competition for the post. The Business and Commerce Committee will hold a pre-nomination hearing before the Secretary of State confirms the nomination.
