FCA reviews delayed responses to MPs

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The FCA is reviewing how it responds to letters from MPs after response times increased earlier this year.

Minutes from the regulator’s board meeting on 27 and 28 July, released today, note the FCA had kicked off a review of its correspondence with politicians because, during April and May, it had taken “significantly” longer to get back to MPs when they wrote letters.

The minutes say: “Response times to MP letters had significantly increased during April and May. A review of handling MP letters was underway.”

No further detail was given on the nature of the review.

Last month, Treasury committee chair Andrew Tyrie MP criticised FCA chief executive Andrew Bailey for failing to respond to him with an update on the Financial Services Compensation Scheme funding review.

In the minutes, the FCA also confirmed a new mission, which it is said would be published this Autumn at its annual public meeting earlier this year, was due to be consulted on this month.

The mission is intended to underpin the FCA’s overarching objectives with more specific detail on how it decides among its different regulatory tools or prioritises between different consumer groups.

The minutes also reveal the regulator’s thinking behind an announcement it made in August that the FCA would consult on how redress is calculated for unsuitable pension transfer advice.

In particular, the FCA said enhanced transfer value redress was not “achieving its objectives” under the current calculation method that dates back to the 1990s.

The minutes say: “The board noted the executive had agreed to consult on a new proposed methodology for the consultation of redress in enhanced value transfer cases.

“The board noted the risks associated and stressed the method currently being used to calculate ETV redress cases was now thought unlikely to achieve its objectives.”