Damning report on the REGULATOR is out – verdict includes "INCOMPETENT AT BEST, DISHONEST AT WORST",
26/11/2024
The UK's financial regulator, the Financial Conduct Authority (FCA), has been condemned in a scathing report from a group of MPs and peers.
Describing it as "incompetent", the report says the FCA is "too often failing" to perform its functions and are calling for it to be overhauled.
THE REPORT, EXTERNAL CAN BE READ HERE
The report looked at the following specific themes
The report:-
- Was carried out by the All-Party Parliamentary Group on Investment Fraud and Fairer Financial Services, made up of 30 MPs and 14 members of the House of Lords.
- Is due to be presented in Parliament later on Tuesday and was put together over two and a half years by a cross-party interest group based on written testimony from 175 respondents including:-
- Whistleblowers,
- Victims of scams and
- Current and former employees of the regulator.
The report concluded the FCA:-
- Was "incompetent at best, dishonest at worst", that its actions were "slow and inadequate"
- Leaders were "opaque and unaccountable".
- Had failed to properly investigate and act on information provided by whistleblowers and it said a transformation programme undertaken by the regulator had "not worked".
Current and former FCA staff said:-
- The regulator had a “defective culture” in which “errors and inaction" were "too common”
- The worst staff culture I have ever experienced in nearly 40 years
- They had tried to raise "serious and challenging questions" but they were "criticised, bullied and sidelined
- Those who challenged a top-down "official line" on any given issue were "bullied and discriminated against, or even managed out
The suggested reforms - some of which will require legislation - include:-
- Introducing a no tolerance policy for a lack of integrity
- Establishing a supervisory council to review the FCA's effectiveness.
- Changing how the FCA is funded.
- Overhauling the way the FCA’s senior leadership team is appointed.
SOURCE
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