Source · Select Committees · Treasury Committee
Recommendation 15
15
Not Addressed
Paragraph: 96
We welcome the ongoing dialogue between the Treasury, the FCA, and other financial regulators on...
Conclusion
We welcome the ongoing dialogue between the Treasury, the FCA, and other financial regulators on the perimeter, but the failings in the FCA’s regulation of LCF and constant movement of the perimeter are signs that further action is required.
Government response summary AI-generated
The government response provides an update on the individual consideration and resolution of LCF complaints, promising a further update to the Committee by 30 September 2021. It does not address the committee's broader points about ongoing dialogue on the perimeter or the need for further action concerning perimeter movement.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
96
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
The Government considers that the existing arrangements for examining and, where relevant, amending the regulatory perimeter are effective. These arrangements have led to a number of important changes to the scope of FCA regulation in recent years, which have served to improve consumer protection in the financial services sector. In response to the recommendation by the previous Treasury Committee, we have established an annual meeting between the FCA Chief Executive and the Economic Secretary to the Treasury to discuss the contents of the FCA’s annual Perimeter Report. A summary of that meeting is published to promote transparency. The Treasury also engages with the regulators on perimeter issues outside of this annual process where needed. The Government also notes the FCA Chief Executive’s oral evidence to the Committee in which he stated that he is “not sure that a formal power, as such, would add very much”. Ultimately, decisions on which activities should sit within the perimeter of regulation should be for ministers, with the approval of Parliament. For the reasons set out above, the Government does not consider it necessary to provide the FCA with a formal power to recommend changes to the regulatory perimeter.
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