Ex-Chancellor Philip Hammond Suspected of Breaching Lobbying Rules
Summary:
Former UK Chancellor, Lord Philip Hammond, is suspected of breaching lobbying regulations for ex-ministers through his role in facilitating communication between the then Economic Secretary for the Treasury, John Glen, anonymous Treasury officials, and Dmitry Tokarev, CEO of a crypto company. The Financial Times report alleges this based on Treasury documents obtained by a Freedom of Information Act request. Hammond denies any wrongdoing, dismissing his communication with Glen as keeping in touch with a "close political friend".
Lord Philip Hammond, previous Chancellor of the Exchequer for the United Kingdom and staunch supporter of cryptocurrency, is suspected of breaking the guidelines that regulate lobbying by former ministers. A Financial Times article published on February 9 references possibly incriminating Treasury documentation acquired by a Freedom of Information Act request. These documents potentially implicate Hammond in facilitating communication in March 2021, between John Glen, then Economic Secretary for the Treasury, certain anonymous officials and Dmitry Tokarev, CEO of crypto company Copper.
The same report alleges that Glen prompted his officials to employ Hammond as a conduit for communication with Tokarev. Following a meeting with these officials, Hammond reportedly phoned Glen to communicate that Tokarev was greatly impressed, and to express Copper's anxieties over the rapid regulatory changes facing crypto firms. All this took place before Hammond officially took on the role of Senior Adviser for Copper in August 2021.
Considering he stepped down from his Chancellor role in July 2019, Hammond should have gained approval from the Advisory Committee on Business Appointments before engaging in lobbying activities with his former department in the private sector. However, Hammond explained to the Financial Times that he did not view his spring 2021 communications with Glen as lobbying and made no request to the Economic Secretary for any meeting between the Treasury and Copper as he saw it as "inappropriate". He did admit to calling Glen in March 2021, but considered this standard practice for keeping in touch with a "close political friend".
A spokesman for the U.K. Treasury has also refuted these allegations, stating that its officials regularly engage with numerous crypto firms throughout the year in order to fully understand the sector and enable balanced and secure policy development.
In June 2022, Hammond himself stated public concerns that the U.K.'s position in cryptocurrency regulation is falling behind European Union competitors. While acknowledging the U.K's historical agility in adopting new technology, he noted a lack of progress in the field of crypto regulations. He speculated that the reason for this stagnation may be attributed to both a "bandwidth issue" and a "capacity issue.
Published At
2/9/2024 2:33:02 PM
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