Labour Shadow Treasury financial secretary Chris Leslie says the Government needs to consider the impact of the Arch cru debacle on consumer trust and confidence in financial services.
Speaking at a parliamentary debate on Arch cru last week, Leslie said: “We should not underestimate the pain, anger and distress people justifiably feel but we must also consider the message this kind of scandal sends out to the public at large. This situation can only serve to undermine the confidence that people have in saving for their future.
“Parliamentarians and the Government must therefore not only consider the impact this scandal has on those directly affected but the repercussions this scandal has on people’s trust in financial products more widely.”
Leslie called on the FSA to provide more information to investors about the failure of Arch cru and the role of authorised corporate director Capita Financial Managers, so that investors can make an informed decision about whether to accept the £54m compensation package agreed by the FSA in June.
Leslie also backed calls for an inquiry. He said: “Irregular practices clearly took place, which merits an investigation into the regulator’s handling of the Arch cru failure.”