Commons Sense

House of Commons · Ministers' Questions

Financial Conduct Authority

Tuesday 3 December 2024 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Bob Blackman asked about the potential implications of a report on the Financial Conduct Authority.
  • The Minister responded that the FCA has made substantial changes in response to historical incidents.
  • The Minister expressed confidence in the FCA and mentioned sending remit letters outlining objectives.

Topics (select to filter)

Questions & Answers

Q1 Bob Blackman Con Harrow East
Context

The APPG for investment fraud and fairer financial services published a report on the Financial Conduct Authority (FCA), raising concerns about historical incidents of investment fraud.

Question

If she will make an assessment of the potential implications for her policies of the APPG for investment fraud and fairer financial services' publication entitled “Report on the Call for Evidence about The Financial Conduct Authority”, published on 26 November 2024.

Answer from Tulip Siddiq

I read that report with great interest and have a lot of sympathy for those who suffered. However, a lot of the incidents described happened a very long time ago. The FCA has made substantial changes in response to those experiences. That does not mean the end of our engagement with the FCA, but we are continuing to hold it to account and it has made changes since the report came to light.

Partly answered

Not addressed: The specific implications for current government policies were not addressed in detail.

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Q2 Bob Blackman Con Harrow East
Business Compliance
Context

The Financial Conduct Authority (FCA) has faced numerous new scandals since the publication of a report on its historical failures in regulating investment fraud.

Question

The FCA has been completely defensive in response to the report. Since the historical elements quoted by the FCA, 13 major scandals have erupted. I will not intrude on your time, Mr Speaker, because I am sure that you would not want me to list them all, but Woodford Equity, car finance and others have come to light since the details came out. Clearly, there is a need to fundamentally reform the FCA so that victims of scandals are properly compensated and the industry is properly regulated in the way that we would all like to see.

Answer from Tulip Siddiq

I understand that lots of people have suffered, as the report explains, which I said I have read. However, I do have confidence in the FCA; I have sent it remit letters outlining what we expect it to do to deliver on its objectives. The FCA is looking at certain things such as its rulebook, which we think is too extensive, to look at rules that no longer need to be applied but, overall, we are working with the FCA closely and we believe that it is trying its best. It is not possible to have a system where nothing ever goes wrong, but we are trying to minimise that and ensure that there is consumer protection. The FCA knows that we are working together to deliver on its objectives.

Partly answered

Not addressed: The specific ask for fundamental reforms was not addressed with concrete details or commitments.

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