Proactive Investors - A committee of MPs has branded the UK’s financial regulator incompetent and called its integrity into question after a detailed report into its performance.
A call for evidence was established after widespread criticism of the regulator for its handling of the London Capital & Finance, Connaught, Interest Rate Hedging Product and British Steel Pension Scheme scandals.
Key findings from the All-Party Parliamentary Group (APPG) on Investment Fraud and Fairer Financial Services found a defective organisational culture and a lack of accountability and transparency.
Bob Blackman, Co-Chairman of the APPG said its purpose is to advocate for the victims of financial misconduct, crimes, scandals, frauds and regulatory failures.
“As such, the conduct and performance of the FCA is of great interest to us.
“The FCA responded to the excoriating criticism it received about its poor performance by launching a Transformation Programme.
“Unfortunately, the testimony received by the APPG in response to its Call for Evidence indicates that this programme has been a failure.
“The FCA’s deep-rooted cultural problems, described so forensically by the series of external reports, are still there; if they weren’t, the FCA’s handling of recent issues such as the Woodford, WealthTec and Philips (LON:0LNG) Trust Corporation scandals would have been satisfactory.”
APPG will publish its full 380-page report, containing testimony from 175 individuals on 26 November with recommendations that include a debate on whether the FCA should be abolished or reformed.
Among its other proposals are the establishment of a supervisory council, the removal of the FCA’s immunity from civil liability to consumers and restrictions on whether/when regulators join regulated firms.