"The Treasury Committee has approved Andrew Bailey’s appointment, but it has also raised a number of serious concerns regarding the performance of the FCA"
In a scathing critique of Andrew Bailey’s term as CEO of the FCA, Gina Miller's True and Fair Campaign claims that under his tenure, the FCA has faced a "catalogue of regulatory failures".
The Campaign says that since Bailey's appointment at the FCA in 2016, the regulator has failed to investigate a complaint by a whistleblower against the failed HBOS Group, failed to publish an independent report into the abusive treatment of RBS business customers, and refused to respond to a whistle-blower’s warnings about London Capital & Finance which later collapsed, leaving 11,600 customers with losses of up to £236 million.
The Campaign also believes the FCA failed to properly regulate peer-to-peer Lendy which collapsed, costing 9,000 investors up to £90 million, and also noted failings related to the suspended £2.5 billion M&G Property Fund and the Woodford scandal in which 300,000 investors lost over £1 billion.
Despite this, the Treasury Committee said it is satisfied that Bailey has the professional competence and personal independence to be appointed.
However, in its report, the Committee did highlight "a number of serious concerns about the culture and operations of the Financial Conduct Authority and the industry that it regulates".
Bailey has promised further evidence to the Committee in response to the issues raised, and the Committee has also planned a pre-appointment hearing with the new CEO of the FCA.
In summary, the Committee said: "We are clear that there is a gap between public expectations and the current powers and performance of the FCA and clear in our duty to support the Government and the institution of the FCA in a process of improvement."
Commenting on the report, Mel Stride MP, Chair of the Treasury Committee, said: “The Treasury Committee has approved Andrew Bailey’s appointment, but it has also raised a number of serious concerns regarding the performance of the FCA both before and during his time as its CEO.
“Many of these concerns – specifically around culture, transparency and insufficient speed of action – will remain a key focus for the committee.
“The Committee is clear that it has an important role in improving the performance of the FCA. We will be holding a rigorous pre-appointment hearing with the new CEO to consider further the issues raised in yesterday’s session.”
