UK financial watchdog faces harsh criticism over consumer protection failures
MPs release 350-page report highlighting major problems at Financial Conduct Authority. Investigation reveals internal culture issues and leadership failures that allowed financial frauds to happen
A hard-hitting parliamentary report published today points to deep-rooted problems at Britainʼs financial watchdog. The 350-page study (based on 175 witness statements) shows how the Financial Conduct Authorityʼs poor management let down many people
The cross-party group found that the FCAs internal culture made it harder to stop financial crimes: whistleblowers and ex-staff described wide-spread dishonesty inside the organization. Several big-time frauds — including the Connaught Fund and London Capital problems — happened while the FCA wasnt paying attention
The testimony received suggests that there are very significant shortcomings to the FCA. It comes across as an opaque and unaccountable organisation‚ slow to act and even slower to admit it has got things wrong and to change
The report calls for major changes at the top including replacing Nikhil Rathi (the chief-exec) and Ashley Alder (the chairman). A staff member called Rathiʼs leadership style “tin-eared“ with no care for peoples problems; while other managers shut-down any disagreement from workers
The timing isnt great for the watchdog — Rachel Reeves the Chancellor just told them to do better at a big City speech this month. Rathi whose job ends next fall might not try to stay on; hes being talked about for a top government post
The FCA hit back at the reports findings saying: “We strongly reject the characterisation of the organisation“ They also said theyve fixed old problems and changed how they work
