(Adds more detail, background)
By Huw Jones
LONDON Aug 12 Win Bischoff, chairman of
Britain's accounting watchdog the Financial Reporting Council,
will also become chairman of JPMorgan Chase's European
arm from January, the investment bank said on Tuesday.
His appointment to JPMorgan comes at a time when British
lawmakers are keen for the FRC to scrutinise the accounts of
banks more closely.
Lawmakers have questioned regulators over why accountants
gave banks a clean bill of health just months before they had to
be rescued by taxpayers in the 2007-09 financial crisis.
The FRC said that the UK government's business ministry,
which appointed Bischoff to head the accounting watchdog, was
aware at the time that he might take up a post at JPMorgan.
Bischoff's appointment at the bank has been approved by the
banking sector's two main regulators, the Financial Conduct
Authority and the Bank of England's Prudential Regulation
Authority, the FRC said.
Bischoff took up the reins at the FRC earlier this year
after stepping down as chairman of Lloyds bank. He will
work about two days a week at the bank and two and a half days
at the watchdog.
An FRC spokeswoman said the regulator did not believe there
was any conflict of interest in Bischoff working for a regulator
and a bank.
"Potential and actual conflicts of interest are monitored,"
the spokeswoman said.
Bischoff began his role as a non-executive director and lead
independent advisor of JPMorgan Securities (JPMS), the Wall
Street bank's main legal entity in Europe, the Middle East and
Africa on Tuesday, according to an internal memo sent by Daniel
Pinto, head of JPMorgan in Europe and CEO of the global
corporate and investment bank.
He will also serve on the Directors' Risk Policy Committees
for JPMS and JPMorgan Europe Limited, as well as the EMEA
Governance Review Committee and the EMEA Audit and Compliance
Committee, the memo said.
Bischoff's role will involve monitoring the firm's strategy,
executive management, performance and standards of conduct and
is central to its international governance, Pinto said in the
The FRC warned accountants in May that they must sharpen
their act when it comes to checking the books of banks or they
could be forced to take corrective action.
(Additional reporting by Clare Hutchison; Eiting by Crispian