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MPs question independence of FCA appeals process

Andrew Tyrie Tory conf 2013.jpg

MPs have questioned the independence of the FCA’s appeals committee calling for it to be investigated as part of a review of enforcement at the regulator.

The Treasury committee published documents this week following its inquiry into the appointment of Tim Parkes as chair of the FCA’s regulatory decisions committee.

The FCA says the RDC is “operationally separate” from the rest of the regulator. The committee makes decisions on some enforcement and supervisory action, as well as firm and individual authorisations.

The committee’s members are appointed by the FCA board and it has its own team of support staff and legal advisers.

Treasury committee chair Andrew Tyrie says: “Decisions made by the RDC must be taken on their merits. So the committee needs to be independent from the FCA, and demonstrably so. This is all the more important if enforcement is to become a credible last line of defence in regulatory armoury.”

Last month, the Treasury committee called for the FCA to separate its enforcement division following a damning report into the failure of HBOS. It said a third enforcement regulator should sit between the FCA and the Prudential Regulation Authority.

Tyrie this week repeated his desire for an independent review into enforcement at the regulators and said the structure of the RDC should be included.


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There are 5 comments at the moment, we would love to hear your opinion too.

  1. sounds about right, its independent with its members appointed by the FCA, the body it investigates appeals about. One way of inspiring confidence in the appeals procedure I suppose.

  2. Nothing the FCA or any branch of it does is independent from the FCA. To pretend otherwise is just brazen mendacity.

  3. The FCA is not in any way independent, and is given executive powers way beyond its competency and way beyond what is democratic. The lack of true independence in the appeals committee given the FCA’s excessive reach and power is scandalous and wrong

  4. One of the HBOS 21 was deputy chairman of the FSA so it seems they are unlikely to take action even though the common consensus is that every one of them should be banned.

  5. The committee cannot claim independence, when all the evidence shows an “in-house” operation. The reality is, that these “committees” are simply blocking many wrong-doers, from facing a lawful trial, in a court, with a jury. This will only serve to store up lots of problems, for a future date, which may well be now.
    Support the petition to restore the rule of law :-

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