Drama in the City as Lord Mayor frontrunner pulls out over ‘criminal proceedings’ facing close associate

The frontrunner to become the next Lord Mayor of the City of London has abruptly withdrawn his candidacy after a close business associate was hit with criminal proceedings, City AM understands.

Tim Hailes, a former JP Morgan banker who became a City alderman in 2013, took the decision to step aside late last night in order not to “damage…the City’s reputation” or that of the mayoralty.

Hailes did not identify the nature of the criminal allegations or the individual facing prosecution. He did not respond to phone calls or requests for comment.

In a statement supplied by the City of London Corporation, Hailes said: “I became aware late last week that someone closely connected to a previous employer where I was a director and shareholder is subject to criminal proceedings.

“This in no way involves me and I am not personally under investigation. But to ensure that there is no possibility of any damage to the Mayoralty or the City’s reputation I have decided to step aside at this election.

‘Not an easy decision’

“This has not been an easy decision, but I believe it is the right course of action in the circumstances.”

Hailes added that he hoped to be considered for the mayoralty again at a later date “when circumstances permit.”

“The whole point of the “Modern Mayoralty” programme is that the office is bigger than the individual. It must be so,” Hailes said in a post on LinkedIn.

Following Hailes’ eleventh-hour withdrawal, City aldermen have decided to bring forward the candidacy of Bronek Masojada, who had been a mayoral candidate for 2027.

Masojada, the former chief executive of insurance firm Hiscox, could become Lord Mayor elect as soon as tomorrow, the scheduled date for the election. The election will continue to take place as planned, the City Corporation said.

Hailes spent 20 years at JP Morgan before leaving in 2019 to become a director of fintech firm Five Islands Capital and crypto firm Blockthree Holdings. He resigned from both businesses in 2024.

The shock exit of Hailes adds unusual drama to the election of the Lord Mayor, a one-year term which dates back over 800 years in which office-holders act as global ambassadors for London’s financial and professional services industry.

If successful, Masojada would take over from current incumbent Dame Susan Langley, the first Lady Mayor, in mid-November.