UK financial regulator The FCA, and the Prudential Regulation Authority (PRA), have announced that they have appointed Elizabeth Passey as Chair of the Financial Services Compensation Scheme’s (FSCS) board. She will take up the role on 1 October 2024.

Elizabeth Passey is currently a senior adviser at J Stern & Company, a member of the investment committee of the Goldsmiths Company, a member of the boards of the Rivers Trust and the Wye & Usk Foundation, a patron of Clean-up UK and ambassador for the 30% Club. Elizabeth previously provided consultancy services to Artemis Investment Management between 2018 and 2019 and EFG Harris Allday in 2018. Prior to this she was a managing director for Investec Asset Management between 2012 to 2014 and for Morgan Stanley between 2006 to 2012, having held various senior roles since starting at Morgan Stanley in 1994. She recently completed tenures as Chair of the Rural Payments Agency (2018 to 2024) and the University of Glasgow (2016 to 2024). She was a board member of VPC Specialty Lending Investments PLC from 2015 to 2023 and a UK board member of The National Lottery Community Fund from 2014 to 2022.

The appointment was made by the FCA Board and the Prudential Regulation Committee (PRC) with the approval of HM Treasury. Elizabeth Passey succeeds Marshall Bailey OBE, who is stepping down after 2 terms as FSCS Chair.

The FCA’s senior independent director, Richard Lloyd OBE, who was on the selection panel, commented:

“Elizabeth will bring a wealth of experience of financial services, public service and governance to the role and we look forward to working with her.

“I want to thank Marshall for his impressive leadership over the last 6 years, a period of significant change for the FSCS.”

Commenting on her appointment, Elizabeth Passey, said:

“I am delighted to be joining the FSCS as its new Chair. The FSCS provides trust in financial services, and this is arguably more important than ever. It is vital the organisation continues to provide a high-quality service that gives consumers the confidence to save and invest.

“Marshall and the FSCS’ board have directed the organisation through a significant change to its work, with a steep rise in complex claims over the last 6 years. I’m looking forward to working with the other directors and the executive team to help the FSCS continue its evolution as a compensation scheme, so that it can best protect consumers in the years ahead.”

The FCA and the PRA are required by the Financial Services and Markets Act 2000 (FSMA) to appoint the Chair of the FSCS, with the appointment being approved by HM Treasury. The appointment must be on terms that secure appointees’ independence from the FCA and the PRA in the operation of the compensation scheme.

The Board of the FSCS is responsible for ensuring that the compensation scheme is properly resourced and able to carry out its work effectively and independently.

The FSCS was set up as a statutory compensation scheme for customers of FCA and PRA UK-authorised financial services firms that are unable, or likely to be unable to meet claims made against them. It can help with most financial products – including deposits, insurance, PPI, debt management, funeral plans, mortgages, pensions and investments.