The Treasury Select Committee has approved the appointment of Ashley Alder as chair of the Financial Conduct Authority.

In a new report published today (15 December) MPs said they are satisfied that Alder has the appropriate professional competence and personal independence for the role.

It follows a pre-appointment hearing yesterday (14 December), when MPs questioned him on a range of topics.

That included financial services regulation, the operational independence of the FCA, and the role of the FCA in combatting fraud.

They also asked Alder about retail savings interest rates and protecting mortgage holders.

The MPs acknowledged Alder’s extensive experience in markets and international financial services experience in Hong Kong.

However, they also pointed out Alder’s inexperience regarding consumer regulation and UK financial services.

They stressed that it will be important that his knowledge of these areas be developed quickly.

The committee also expects Alder to take time to familiarise himself with legacy issues from the global financial crisis.

Some MPs also expressed their dissatisfaction that Alder did not attend the hearing in person but remotely from Hong Kong.

The committee also noted that Alder will be moving from a jurisdiction of extensive state control in Hong Kong.

As a result, MPs said he will need to demonstrate independence and increase his knowledge of the way parliament scrutinises the FCA.

The Treasury announced Alder’s appointment as new chair of the FCA in July. It came after Charles Randell stepped down from the role in Spring.

Alder is set to take up his role as FCA chair in January 2023 for a five-year term.

He has been chief executive officer of the Securities and Futures Commission (SFC) in Hong Kong since 2011.

Alder also chaired the board of International Organization of Securities Commissions (IOSCO) and sits on the Financial Stability Board’s plenary and its steering committee.

He started his career as a lawyer in London in 1984 and practised in Hong Kong for more than 20 years.

From 2001 to 2004, Alder was executive director of the SFC’s corporate finance division. Later on, he returned to private practice as head of Asia at law firm Herbert Smith LLP.