A replacement chief executive is being actively sought "internally and externally" for the Financial Services Compensation Scheme (FSCS) since Suzanne McCarthy decided to join the Office of Rail Regulation last month.

One internal candidate could be Richard Pratt, recently appointed as a non-executive director and the man investigating Gibraltar on behalf of the Treasury. Backchat was told that, since he has "fingers in many pies" at present and may not be able to work full-time, he may take the chairman's job. But an FSCS spokeswoman said the incumbent Nigel Hamilton will stay put "as far as I know."