FCA internal audit reports have revealed ongoing concerns about wholesale supervision in retail banks as the Treasury committee says the regulator is in “special measures”.
The Treasury published a redacted copy of the regulator’s 2015 internal audit report summary today.
Treasury Select Committee chair Andrew Tyrie says the committee expects the FCA’s management to have dealt with the issues raised in the report.
Among other things, the report raises concerns about about the supervision of wholesale activities within retail banks.
Tyrie says: “The first three years of the FCA’s life have been very difficult, to put it mildly. The regulator has been in ‘special measures’ for some time.”
Tyrie adds: “Scrutiny of internal audit reports reflects the determination of the committee, on behalf of Parliament, to engage in more rigorous examination of regulators, and much more than had been the case prior to the financial crisis.”
The Treasury started scrutinising the audit reports in 2014.
Tyrie says: “The regulator’s subsequent extraordinary and incompetent briefing of the press on its plans to investigate the insurance industry reinforced concerns already held by the committee.”