What they don't want you to know: news and investigations

FCA under fire. Urgent Reform Needed to Restore Trust. The recent report by the All-Party Parliamentary Group (APPG) on Investment Fraud and Fairer Financial Services has exposed deep flaws within the Financial Conduct Authority (FCA).

After nearly three years of investigation, the findings are stark: the FCA has failed to adequately protect consumers and businesses from financial misconduct. According to the APPG, its performance can be described as “incompetent at best, dishonest at worst.”

This failure has had real-world consequences. Victims of fraud and financial scandals have been left without sufficient support or recourse, suffering devastating financial and emotional impacts. Even more concerning is the evidence from former FCA staff, whistle-blowers, and fraud victims, which points to a toxic internal culture, lack of accountability, and mismanagement. These issues undermine the regulator’s credibility and its ability to protect the very people it is meant to serve.

The APPG report outlines critical recommendations, including the creation of a supervisory council to oversee the FCA, restructuring its funding model, and removing its immunity from civil liability to consumers. Perhaps most urgently, the leadership and culture within the FCA must undergo a comprehensive overhaul. Without these changes, the regulator risks further erosion of public trust and continued failure to fulfil its responsibilities.

The FCA has responded by acknowledging the victims’ suffering and reiterating its commitment to consumer protection. However, actions—not words—are what is needed now. The financial services industry relies on trust and accountability. Without a regulator that is both effective and transparent, this foundation is at risk.

Reform isn’t just necessary—it’s urgent.

The FCA must step up to restore faith and protect the people it was designed to serve.

#FCA, #UKGOV, #FINANCE, #WHISTLEBLOWERS

https://www.theguardian.com/business/2024/nov/26/fca-mps-peers-financial-conduct-authority-appg-report