Select committee: Treasury Committee
Conclusion 3
Fourth Report - The Financial Conduct Authority’s Regulation of London Capital & Finance plc
Published 24 Jun 2021
Paragraph 42
Addressed to HM Treasury
Treasury Committee The Financial Conduct Authority’s Regulation of London Capital & Finance plc All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Given that Dame Elizabeth’s report cited Megan Butler as bearing responsibility for important areas of failure and that her recruitment was conducted internally with just one alternative candidate, we understand why many will feel that “a buck that does not stop with an individual stops nowhere” when it comes to the personal consequences for those involved with the failings at the FCA in relation to LCF.
From: Treasury Committee, Fourth Report - The Financial Conduct Authority’s Regulation of London Capital & Finance plc (HC 149), paragraph 42, 24 June 2021
Government response
The government responded to the whole report on 13 September 2021 (deadline 24 August 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.HM Treasury's response says the Government has "fully considered" the Committee's recommendations, agrees with some, and does not consider a formal FCA power to recommend perimeter changes "necessary".
- On the regulatory perimeter, the Government "considers that the existing arrangements for examining and, where relevant, amending the regulatory perimeter are effective", and does not consider it "necessary" to give the FCA a formal power to recommend changes.
- On mini-bonds, the Treasury "is aiming to publish its response to the consultation and bring forward plans for legislation in the autumn", rather than by the end of September 2021 as the Committee recommended.
- On fraud, the Home Office is developing a Fraud Action Plan, to be published "after the 2021 Spending Review", which "will consider any potential legislative or regulatory change required".
- On Financial Promotion Order exemptions, the Treasury "has already commenced work with the FCA to review exemptions" for high net worth individuals and sophisticated investors.