House of Commons to vote on FCA failings

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MPs are set to debate the failings of the FCA, including its handling of the Connaught fund and missold interest rate hedging products, in a three-hour House of Commons session on 1 February 2016.

Conservative MP for Aberconwy Guto Bebb will table the motion this House believes that the Financial Conduct Authority in its current form is not fit for purpose and we have no confidence in its existing structure and procedures.”

MPs will vote on the motion at the end of the debate.

He is supported by Treasury committee member and Labour MP John Mann and SNP MP and pensions spokesman Ian Blackford.

Bebb told Mortgage Strategy’s sister title Money Marketing: “The FCA have failed to resolve the interest rate swaps or the Connaught investment fund scandals and there are a lot of colleagues who have concerns about the way the review into banking culture has disappeared.

“All in all rather than having individual debates on each issue we wanted to make a point there is a lot of disquiet about how the FCA is performing.”

A spokeswoman for Bebb confirmed the debate will cover how the regulator conducted its investigation into Capita Financial Managers and Blue Gate Capital, firms that sold the failed Connaught Income Series 1 Fund. Defunct bridging lender Tiuta used S1F as a funding line for bridging loans.

In addition, MPs will discuss the misselling of interest rate hedging products which has resulted in around £2bn in compensation being paid by banks to businesses who bought the products.

The move follows a Treasury committee meeting yesterday where MPs quizzed FCA chairman John Griffith-Jones and acting chief executive Tracey McDermott over the regulator’s independence from government.