Context
The Financial Conduct Authority (FCA) has been criticized for its handling of the Safe Hands funeral plan fiasco, with many customers out of pocket by £60 million. Nick Smith is concerned about delays in responding to freedom of information requests and questions the Treasury's support during the transition from an unregulated sector into regulation.
Question
Whether he has had recent discussions with the Financial Conduct Authority on the administration of Safe Hands Plans. My experience of the FCA and the Safe Hands funeral plan fiasco is that it took six months to reply to my freedom of information request and pleaded commercial confidentiality to key questions, and that, despite being warned, the Treasury failed to support consumers moving from an unregulated sector into regulation. At least 47,000 people are out of pocket to the tune of £60 million.
Answer from Bim Afolami
I share the hon. Member's anger at how Safe Hands customers have been treated. The business is under criminal investigation by the Serious Fraud Office and its administrators are bringing legal action against the former owner of the Safe Hands business. In the Treasury, we do not believe it is right to use taxpayer money to compensate consumers who lose out due to the conduct of unregulated firms; Safe Hands was not within the regulatory perimeter at that time.
Not addressed: The Minister did not directly address the request for an independent review and instead focused on reasons against using taxpayer funds for compensation.
How: Did Not Believe It Is Right To Use Taxpayer Money
Was this summary accurate? Tell us
How accurate was this summary? (1 = poor, 5 = spot on)