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Labour attacks ‘nonsense’ Govt position on FCA minutes

Chris Leslie

Shadow Treasury financial secretary Chris Leslie has attacked the Government’s “nonsense” refusal to back calls for the Financial Conduct Authority to be forced to publish board minutes.

On Tuesday, Leslie parked his amendment to the Financial Services Bill, which would have made publication of minutes a duty, after Treasury financial secretary Mark Hoban said he would “consider whether there is a way of including the measure without setting a precedent on the degree of intervention in how boards function”.

Speaking to Money Marketing, Leslie says by not making publication mandatory, the Government has so far failed to demonstrate the commitment it claims to have to transparency.

He said: “If the Government does not concede, it is something we may need to bring back on the floor of the House in a few weeks time, so more MPs can see the nonsense of their position.”

The amendment would have required the FCA to “publish, unless publication would be inappropriate, the agendas and minutes of the meetings of its committees and subcommittees”. When it makes a policy decision the minutes would need to “summarise the considerations which were taken into account, both for and against the decision”.

On Tuesday, Treasury financial secretary Mark Hoban told MPs at a meeting of the public bill committee currently voting on amendments to the bill that the FSA is “quite a transparent body when it comes to policymaking” and that publishing the minutes would “complete the loop”. But he said the FCA board should be allowed to decide how this is done.

“I do not have any objection to it, it is a good thing to do and clearly Lord Turner thinks it is a good thing to do,” he said.

On Monday, the Treasury select committee renewed its call for the board to publish its minutes, an idea FSA chairman Lord Turner suggested in one of the committee’s hearings in November.

In the public bill committee meeting on Tuesday afternoon, Leslie said he wants to “ratchet up the pressure” on committee members who might vote against the amendment. TSC member and Conservative MP Mark Garnier and his party and TSC colleague Jesse Norman have both voted against amendments Labour claims were intended to deliver on TSC recommendations.

Leslie said: “I understand that in Money Marketing, I have a copy here if Mr Garnier wants a spare copy, he recently said: ”With the minutes from board meetings public, we could say to them ’well you said this, it is in the minutes, can you explain what you meant’, rather than it all happening behind closed doors.’”

Leslie added: “I hope that being in a rather awkward position, he might put pressure on the minister to consider returning with a more appropriate amendment.”


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 2nd March 2012 at 7:02 pm

    Given that the government has already declared that the FCA, like the FSA before it, will be accountable only to its own board (which means accountable to nobody), such calls place it [the government] in a rather difficult position.

    Should it yield to these calls, Hector Sants and/or Adair Turner will swiftly cry foul to the government, on the grounds that: But you said we’d be able to carry on just like before.

    If, on the other hand, the government stands firm, the obvious inference will be that any claims it may have made about how it supports greater transparency are just hollow hogwash ~ just like the Conservatives’ pre-election manifesto pledge to put right all the damage done to pensions over the past 25 years and thus “to reignite the UK savings culture”. What’s happened about any of that?

    But these are politicians, so what can you expect? They tell the electorate what they think it wants to hear whilst, in reality, pursuing an entirely different agenda behind the scenes. There can be no better example than Mark Hoban’s claim that the FSA is “quite a transparent body when it comes to policymaking”. Transparent my backside.

  2. It is a pity Mr Leslie was not so vocal under the last Government, who are responsible for the secret society type regulation we have now
    |Hoban’s statement that the FSA are “quite a transparent body when it comes to policymaking” is like himself, a bit of a joke.

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