View more on these topics

Row over FSA ‘briefing media against the BoE’

MPs have demanded answers from the FSA over suggestions that the regulator briefed the media against the Bank of England over the Northern Rock fiasco.

At a Treasury select committee meeting this week, chairman John McFall confronted FSA chairman Callum McCarthy and chief executive Hector Sants with the allegation that FSA staff were the source of a critical BoE story.

McFall said he has been told by journalists that the FSA “spinners were out” but McCarthy said he did “not recognise this statement” and he would fire any staff member found guilty. McFall has written to the FSA to investigate all staff who briefed journalists in September.

McCarthy also got a mauling from McFall for refusing to answer a number of questions relating to the tripartite system of governance.

McFall said: “This is getting really, really unsatisfactory. It seems you are crawling into your den and not answering anything. We want to sort out this issue, we need to know what one of the eminent authorities thinks.”

Labour MP Sion Simon said “everyone in the room” knew the FSA had briefed against the Bank of England and branded McCarthy the “Sugar Ray Leonard of financial services” as he was a “world-class ducker and diver”.

Sants told MPs that the FSA had “lessons to be learnt” about supervisory issues such as extreme stress testing and investigating the role of cre-dit agencies and claimed practical obstacles rather than EU law were the main barrier to a covert lender of last resort facility.

Recommended

‘Highlight fee-only advisers’

Sixteen fee-only IFA firms are lobbying the FSA for the creation of an independent, fee-only adviser category.The FSA’s consultation paper on integrated regul-atory reporting has proposed changes to provide better data about market segmentation by requiring advisers to state whether they are independent, whole of market, multi-tied or tied.But the group, which includes Helm Godfrey, […]

Edeus tightens LTV on adverse range to 80 per cent

Edeus has tightened its lending criteria by cutting loan to values to 80 per cent on its adverse range.It has also reduced adverse self-cert LTV to 75 per cent.In an email to brokers the lender says: “Until the market returns to normality following this ongoing period of volatility, it is vital that a responsible lending […]

‘Clients not worried over independence if goals are achieved’

Thinc Destini director of wealth management Patrick Murphy has questioned the importance of the independent tag, saying he would not have a problem being tied to a single wrap platform.Speaking at Morningstar’s Investment Conference last month, Murphy said being a wealth manager is a pure financial planning role where clients are advised on their goals […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment