An all-party parliamentary group (APPG) for Investment Fraud and Fairer Financial Services has condemned the regulator for its response to a report it produced, in which consumers described the watchdog as “incompetent”.
The report was published in November and MPs welcomed the Financial Conduct Authority (FCA) to meet to discuss its findings, which included the testimony of 175 people who had interacted with the regulator.
This included contributions from mortgage prisoners and people affected by the British Steel Pension Scheme.
Today, the APPG for Investment Fraud and Fairer Financial Services published the first instalment of a supplementary report, which it said it released due to the regulator’s “unconstructive” response to the initial report.
At the time, a spokesperson for the FCA said: “We sympathise with those who have lost out as a result of wrongdoing in financial services, however, we strongly reject the characterisation of the organisation. We have learned from historic[al] issues and transformed as an organisation so we can deliver for consumers, the market and the wider economy.”
Bob Blackman CBE MP (pictured), co-chair of the APPG, said the FCA had not met with MPs, challenged the claims made by consumers, or made a public apology.
Five ways we’ve improved our Premier service
Sponsored by Halifax Intermediaries
He also said the claims the FCA did respond to related to historical cases that had been addressed through its Transformation Programme.
Sarah Bool MP, APPG’s vice chair, added: “There is no doubt the FCA has a difficult job to do. This we understand. However, it does raise the question as to whether the FCA just has simply too much to do.
“Even if the FCA’s sole role was just to deliver on consumer protection alone, that would be a big exercise – especially given how large and complex the UK’s financial sector is. As some recent media coverage suggests, maybe the solution is that the FCA needs to be broken up for the benefit of all.”
