Select committee: Treasury Committee
Recommendation 8
Fourth Report - The Financial Conduct Authority’s Regulation of London Capital & Finance plc
Published 24 Jun 2021
Paragraph 64
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 ↗
Recommendation (the committee's words)
We welcome the FCA’s ongoing transformation programme which has cultural change as one of its priorities. We however note that the FCA has undergone numerous structural and operational changes since its inception, with more changes expected as part of the ongoing transformation. We recognise that culture change takes time but recommend that the FCA Board sets itself an end date for the transformation programme and that it creates milestones at which improvements and evidence of changes in culture can be reviewed. These milestones and reviews should be put into the public domain. At the completion of the transformation programme, the FCA should ensure it has in place measures that will ensure that its improved culture is maintained and embedded.
From: Treasury Committee, Fourth Report - The Financial Conduct Authority’s Regulation of London Capital & Finance plc (HC 149), paragraph 64, 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.