Bingham Report on BCCI: Men who will forge new links

BUILDING closer links within and outside the Bank will form the key task for the two men appointed to head the regulatory bodies set up to strengthen its supervisory role.

The stronger ties - between Bank departments and with the Serious Fraud Office and other supervisory and investigatory bodies - are aimed at spotting problems earlier, one of the key shortcomings highlighted by the Bingham report.

The two take up their posts on 2 November and will work with and for the Bank's executive directors, but say they will gain independence through reporting directly to the Governor and attending the board of supervision.

Ian Watt, who will take charge of the Special Investigations Unit, was due to retire as a partner with KPMG Peat Marwick, the accountants, next spring. He was one of the two assessors who helped Lord Justice Bingham compile his report and has extensive experience of investigations, insolvency and audit work.

Peter Peddie, who will head the new Legal Unit, retired as a partner with Freshfields, solicitors to the Bank, earlier this year.

As well as working closely with the Bank since the mid-1970s, he has advised on corporate finance, general corporate business and regulatory work and a number of privatisations.