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By Huw Jones
LONDON, Jan 23 (Reuters) - Britain named Win Bischoff as theFinancial Reporting Council's new chairman who will face majorchanges from Europe and several high-profile investigations atthe accounting watchdog.
The government said Bischoff, who is stepping down from hiscurrent post as chairman of Lloyds Banking Group, willjoin the FRC on May 1, replacing Baroness Hogg whose departurehad already been announced.
Gay Huey Evans, an FRC board member, will become thewatchdog's deputy chair, replacing Glen Moreno.
Hogg engineered an internal revamp at the FRC in a bid togive a clearer identity and stronger decision making to awatchdog with a broad remit that ranges from auditing andaccounting to corporate governance and actuaries.
The watchdog has a much lower public profile than otherregulators such as the Financial Conduct Authority or the Bankof England.
The FRC fined Deloitte, one of the world's big fouraccounting firms, a record 14 million pounds last September overits work for failed carmaker MG Rover Group, helping to mutecriticism it has been too soft on top book-keepers in the past.
The FRC has come under increased pressure from lawmakers toscrutinise bank audits in particular after accountants gavebanks a clean bill of health just before taxpayers had to rescuethem in the 2007-09 financial crisis.
"Whilst significant progress has been made in recent years,we still have some way to go in rebuilding trust in business andthe professions of which the FRC has oversight," said MichaelIzza, chief executive of the ICAEW, an accounting body.
Bischoff will bring years of experience in banking to awatchdog that has been given much tougher sanctioning powerssince the financial crisis.
"His financial sector experience and track record of runningboards will be invaluable to the FRC on the next stage of itsjourney," Hogg said in a statement.
Bischoff oversaw a restructuring and return to profitabilityat Lloyds, rescued by the government through a 20 billion pound($31 billion) bailout during the financial crisis which leftBritain with a 39 percent stake.
Born in Germany during World War Two, his career in thebanking sector has spanned five decades. He has also previouslycalled for a reform of accounting standards.
Bischoff worked at Schroders before its investmentbanking arm was acquired by Citigroup in 2000. He becamechairman of Citi until stepping down in 2009 and joined Lloydsshortly afterwards.
The FRC announced this week it will investigate KPMG's auditof scandal-hit Co-op bank.
Under Hogg, the watchdog took steps to put pressure on banksand other listed companies to change their accountants morefrequently to avoid cosy relationships.
The European Union has gone further and has agreed new rulesfor mandatory switching of book-keepers, a step the FRC opposed.
FRC Chief Executive Stephen Haddrill welcomed Bischoff'sunderstanding of capital markets and the needs of investors.
