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House of Commons to vote on FCA failings

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MPs are set to debate the failings of the FCA, including its handling of the Connaught fund and missold interest rate hedging products, in a three-hour House of Commons session on 1 February 2016.

Conservative MP for Aberconwy Guto Bebb will table the motion this House believes that the Financial Conduct Authority in its current form is not fit for purpose and we have no confidence in its existing structure and procedures.”

MPs will vote on the motion at the end of the debate.

He is supported by Treasury committee member and Labour MP John Mann and SNP MP and pensions spokesman Ian Blackford.

Bebb told Money Marketing: “The FCA have failed to resolve the interest rate swaps or the Connaught investment fund scandals and there are a lot of colleagues who have concerns about the way the review into banking culture has disappeared.

“All in all rather than having individual debates on each issue we wanted to make a point there is a lot of disquiet about how the FCA is performing.”

A spokeswoman for Bebb confirmed the debate will cover how the regulator conducted its investigation into Capita Financial Managers and Blue Gate Capital, firms that sold the failed Connaught Income Series 1 Fund.

In addition, MPs will discuss the misselling of interest rate hedging products which has resulted in around £2bn in compensation being paid by banks to businesses who bought the products.

The move follows a Treasury committee meeting yesterday where MPs quizzed FCA chairman John Griffith-Jones and acting chief executive Tracey McDermott over the regulator’s independence from government.

The FCA declined to comment.

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Comments

There are 19 comments at the moment, we would love to hear your opinion too.

  1. On behalf of my clients who simply cant afford the FCA and FSCS please hold them to account and stop the expensive farce.

  2. And if the motion is carried – then what?

  3. Should I send them a list?

    Might take a day or two to complete.

  4. Ooooh rubbing hands and reaching for the popcorn!!:-) Roll on accountability for the £500 million juggernaught! Whilst they are at it can we have an explanation for the over charging of fee group… that was brushed under the carpet as an anomally… a £110 million one??

  5. Trevor Harrington 21st January 2016 at 1:35 pm

    lets not knock it – we have a stage – we should help our MPs to use it properly and get the facts out in the open.
    Don’t forget, there will be those in the Commons who support us, as well as those who want to trash us – there is even one (Mick Macateer) who wants to nationalise our profession …

    • Trevor – Get real. See my post above. SW1A 2PW is nowt but an expensive Gas Works. The other night they wasted time debating whether Trump should be banned from the UK. They didn’t even bother to have a vote, so what was the purpose of expending all that hot air? Do you think that the debate on the FCA will achieve anything – apart from some publicity for certain MPs? Talk to an MP! I get better results taking to my neighbour’s dog.

  6. Well in light of the interim levy we will be hit with again this year, I have now worked out this will represent another increase in my charges and fees to my clients. And that said, it is blindly apparent regulation as a whole, is broken beyond repair in this country now !!

    The good should not be made to pay for the bad !

    You cannot free and protect one section of society, by the (financial) enslavement and persecution of another, maybe those who earn a living from the financial services industry, do NOT have the same basic human rights as the rest of society and the FCA is not the consumer champion it claims or strives to be ?

    What is essence we have is an entity, governed at senior level by greasy, and greedy pole climbers, underpinned by a work force with no moral left and a very high (i believe) attrition rate, where experience is replaced by inexperience which in turn leads to a very dis-organised, malfunctioning, very expensive, unaccountable monster making mistakes at every-turn and paid handsomely for it !

    The FCA is nothing but the Alsatian of oppression barking at my/our feet !

  7. John Hutton-Attenborough 21st January 2016 at 2:12 pm

    You have time to raise any issues that you have with your MP before the debate if you feel the need!

  8. Harry Sentiments entirely.

  9. I’m not sure what a possible post FCA world may look like, however surely there is significant room for improvement. I doubt a self regulated LAUTRO / FIMBRA type world will return but maybe a hybrid arrangement may work where the product and advice providers are embraced within a regulator would make more sense.
    I would suggest that those whose livelihoods are linked to the financial services industry, tune in to the parliamentary News Channel on Sky when this debate takes place. It could be very interesting, particularly when the FCA’s murky dealings in and around the Connaught fraud come to light. I look forward to Gutto Beb stating his case.

  10. Apologies Guto Bebb

  11. Whilst it will be sensational to see them berated as the useless t*ssers that they are in general, even if parliament unanimously rules they are useless what will the end result be? If it is anything other than flatten it and start again with a sensible and workable set of rules where those who abide by them are safe from persecution, then it is a waste of time.
    We all know it is a broken machine and even parliament know realises it. The problem is what to do about it and how to fix it.

  12. Apologies ladies and gents: Even Parliament now realises it.

  13. The FCA declined to comment. I’ll bet they did…declined that is.

  14. Swaps, Connaught, Banking Culture Review – they should make sure the Keydata / cosy Capita deal is in the mix. Now there’s a disgraceful farce if ever there was….

  15. Trevor Harrington 21st January 2016 at 10:34 pm

    @ Harry

    Evening Harry – thank you for your generous and considered comments – obviously born from a greater cerebral capacity than I possess.
    We argue for change, and then when the opportunity presents itself to place that argument … you would prefer to discuss it with your neighbours dog … a point well made my friend.

  16. Clearly, as has been suggested on many occasions, what is needed is a regulator of the regulator. The obvious candidate is the TSC, to which Parliament should grant the relevant powers, of which it presently has none. Top of any new regulatory agenda should be enforcement of the Statutory Code of Practice for Regulators, the key word being Statutory, i.e. it’s supposed to be the Law. Parliament should ask itself is why the FSA/FCA has been allowed to ignore the Code and why no effort has ever been made to enforce it. Despite all my efforts, I’ve never managed to get an answer to this question. The BERR and the Treasury just didn’t want to know. Thus far, the Code has never been anything but a token bit of window dressing.

  17. So the debate will focus on three issues only.

    I hope someone somewhere is compiling a comprehensive list of ALL issues where the FCA have failed in their duties and responsibilities, otherwise they would need to set aside months, not three hours! However, it would be helpful to have a complete record with brief details to record them all, otherwise the FCA will be trying to play the occasional infrequent amongst many instances of terrific work card.

    Ian Coley
    Partner

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