The regulator the Financial Conduct Authority (FCA) has a ‘defective organisational culture, driven from the top’, and is widely seen as incompetent, according to a report by a group of members of Parliament and peers. The All Party Parliamentary Group (APPG) on investment fraud and fairer financial services pointed to ‘slowness, inaction, biases toward firms, whistleblower mistreatment, opacity and unaccountability’.
Its 358-page report stated that scandals have emerged in which financial services firms have stood accused of mistreating consumers and small businesses; and the UK’s main financial regulator, the FCA, has been blamed for doing too little too late – or nothing – to prevent and then remediate and punish alleged wrongdoing. Financial crime is a massive problem in the UK, and it is therefore vital that the FCA, the UK’s primary conduct regulator, is delivering, the Parliamentarians said. Hence the APPG launched its Call for Evidence about the FCA.
Its report described the Authority as “an opaque and unaccountable organisation, slow to act and even slower to admit it has got things wrong and to change. The individuals who generously shared their experiences with us told tragic tales of regulatory failure causing enormous financial and emotional distress. Perhaps some of the most compelling evidence comes from current and former employees of the regulator itself, who depict its culture and leadership as profoundly defective.”
For the report in full visit https://www.appgifffs.org/call-for-evidence-about-the-fca.
About the FCA
The London-based FCA is funded by the fees it charges regulated firms. It’s accountable to the Treasury, which is responsible for the UK’s financial system, and to Parliament. For its latest annual report, visit the FCA website.
