This is Money reported that Wheatley is facing "growing backlash" from Treasury ministers following a leak of information that affected insurance companies' share prices, and a scheme set up to provide redress to small businesses that have been mis-sold interest rate hedging products.
Earlier this month, the Government has expressed concern over the fairness of the scheme and in a letter to FCA chairman John Griffith-Jones, Treasury economic secretary Andrea Leadsom stressed that the scheme would benefit from "independent oversight" by a suitable non-executive director.
The FCA has maintained that the redress process has worked as intended, but the Treasury have argued that there have been "complaints that the process of the IRHP review falls short of delivering fair and reasonable redress." The Committee has not yet determined whether these complaints are examples of isolated exceptions to an adequate process, or are signs of a wider, systemic problem with the review.
The Committee pointed out that a £10 million cap on the size of an IRHP has excluded approximately one third of the largest IRHP review participants, and have now urged the FCA to explain its decision-making on this cap, including whether this represented a "concession to bank lobbying".
A Westminister insider told the Mail:
"There are serious doubts about Martin Wheatley across the piste – including from inside the Treasury. There is currently a massive row over whether he should remain in his post."
Guto Bebb, chairman of the Parliamentary group supporting small businesses mis-sold IRHPs, added:
"There is a real concern in Westminister that the FCA is lacking in basic competence. I do not want to personalise this but that does bring into question the suitability of Martin Wheatley."
Wheatley was among four FCA executives who lost bonuses last year after a report criticised the way the FCA handled market sensitive information in relation to the insurance blunder.
We contacted the Treasury for comment and are awaiting a response.
