UK regulator sought assurances over former head joining StanChart

LONDON, Jan 30 (Reuters) - Britain's financial watchdog has received assurances its former head will not share confidential information gleaned from her time at the regulator when she joins banking group Standard Chartered (BSE: 580001.BO - news) , the watchdog said on Monday.

StanChart (HKSE: 2888-OL.HK - news) on Sunday named Tracey McDermott as its group head of corporate, public and regulatory affairs. She (Munich: SOQ.MU - news) was previously acting chief executive of Britain's Financial Conduct Authority (FCA) before departing in June last year.

Britain's lawmakers have called for greater scrutiny of moves between watchdogs and the firms they oversee amid concerns they can erode the independence of regulators.

The government's ethics watchdog on Sept. 15 said "regulatory bodies can do more to maintain integrity through processes to mitigate the risks arising from the 'revolving door'" between regulators and financial firms.

In a letter to StanChart published on the FCA's website, the FCA's current head Andrew Bailey said he had discussed with the bank's CEO Bill Winters the potential that McDermott's work at the regulator might give StanChart an advantage over rivals.

The letter said Bailey and Winters had agreed McDermott would not share with the bank confidential information gleaned during her time at the FCA.

"There are no surprises with this letter, it's part of the process and entirely right and proper," a spokesman for StanChart said.

Banks in recent years have hired a number of former senior regulators and politicians in a bid to improve oversight. Barclays (LSE: BARC.L - news) in 2012 hired Hector Sants, the former head of the FCA's previous incarnation the Financial Services Authority (FSA).

Jon Pain, a former top director at the FSA, joined Royal Bank of Scotland in May 2013. (Reporting by Lawrence White; Editing by Mark Potter)