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Treasury orders review of FSA secrecy rules

The Treasury has ordered a review of FSA rules after the regulator said it was unable to publish a report into the collapse of Royal Bank of Scotland, according to The Sunday Telegraph.

The regulator is under mounting pressure to publish its report following suggestions former chief executive Sir Fred Goodwin had no objection to the content being made public.

The Sunday Telegraph quotes “Treasury sources” as being frustrated over the lack of transparency over the report. The source was unclear as to whether any rule changes could be retrospective to allow publication of the RBS report or a redacted version.

Under the Financial Services and Markets Act 2000, it is illegal to make confidential information public. The paper suggests there are exemptions which allow for the disclosure of information “for the purpose of facilitating the carrying out of a public function” or when “permitted by regulations made by the Treasury under this section”. It also indicates that the express consent of RBS is likely to be needed.

Last Thursday, the FSA concluded the bank’s failure was down to “bad decisions” rather than a lack of integrity. The regulator said it did not identify instances of fraud or dishonest activity by RBS senior individuals or a failure of governance on the part of the board.tom

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. If my memory serves me correctly a short while ago the FSA were proposing publishing the names of IFA firms that were under investigation. Not those that were found guilty of wrongdoing.

    Judge for yourself whether financial services is resembling a corrupt police state.

  2. Every IFA should write to their MP about this report. As nearly every IFA would have had clients in funds or directly holding RBS shares there is a need to know what they found and what they concluded and why.
    Every shareholder should write as they have a right to know.
    Every tax payer should write as they are now paying the price and they have a right to know.
    You can also email the treasury:-
    CEU.Enquiries@hmtreasury.gsi.gov.uk

  3. transparency, transparency, transparency this is what we are told every day. There must be information they do not wish to get into the public hands or they would publish it. Play by your own rules FSA and publish your findings

  4. Bankers (FSA) protecting banks and bankers, whilst the Public, FSCS (funded by us), the industry in general, and the tax payer now funds a bale out of the Irish, due to the RBS having lent Billions in Mortgages when 5 years ago it was obviouse to anyone with a brain the Irish property bubble was going to burst!

  5. As with most of the New Labour legislation the “Act” contains a Henry VIII clause whereby one of Her Majesy’s Ministers can change it with the stroke of a pen.

    Do it Mr Osborne, if it does the regulatory system no harm.

  6. This needs to be published.

    There is becoming a very strong sense of injustice in the way that the FSA appears to be treating different parts of the financial services industry in very different ways.

    The only way to disprove this is to publish in full otherwise the unpleasant stench of self interest that is surrounding the FSA at the moment will become increasingly pungent.

  7. The regulator should bow its collective head in shame.

  8. Of course they wont publish the report. I am amazed that they even reported they had completed an investigation.

    Normally they hide behind the ability the refuse to publish anything to not actually do anything…….with no one (even the Government) having any right to insist on a formal declaration of progress or results.

    The FSA think they are more powerful that God so why should they justify anything to anyone!

  9. Lie No. 1 ~ The FSA is an open and transparent regulator (that’s what it says on the FSA website).

    Lie No. 2 ~ The FSA is entirely independent of government (so why should it be required to take any notice of anything the Treasury may say?)

    I can smell the stench of corruption from here down in Bristol.

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