Lord David Lipsey has accused the FSA of showing “contempt for Parliament” after the regulator failed to brief the Labour peer ahead of a debate on small pension funds.
On Tuesday, Baroness Sally Greengross tabled a question for debate in the House of Lords on the action being taken by Government to ensure people with small pension pots can access “good advice”.
Lord Lipsey (pictured) said the FSA had not provided any information on the RDR or actions being taken to address the problem of an advice gap for people with limited funds ahead of the debate.
He said: “I did not get a briefing from the FSA, and that seems extraordinarily neglectful because, as the noble Baroness, Lady Greengross, made clear, it is the FSA’s retail distribution review that is blamed by many for the advice gap that exists in this area.
“Surely this House had a right to hear the views of the FSA on this matter, its defence of the RDR and its approach to the problems that have been raised.
“I do not know whether this is FSA incompetence or FSA contempt for Parliament. Neither would surprise me and I hope that there is a more benign explanation, but it should know that this gap has been noticed.”
Liberal Democrat peer Lord Archy Kirkwood accused the FSA, the Treasury and the DWP of a “dereliction of duty” in failing to address the small pots issue.
He said: “I think there has been a bit of a dereliction of duty in terms of the way in which those three main policy departments are co-ordinating their work.
“The FSA, the Treasury and the DWP, from the respective positions, should have been across this problem with some positive responses before now.”
An FSA spokesman says: “We take our accountability to Parliament extremely seriously and are always willing to engage with MPs and Lords.”