The Financial Conduct Authority’s Regulation of London Capital & Finance plc
Treasury Committee
Closed
Inquiry
22
Recommendations
16
Conclusions
1
Report
6
Letters
5
Events
Activity timeline 8 events
20 Oct
2021
2021
13 Sep
2021
2021
24 Jun
2021
2021
24 May
2021
2021
19 May
2021
2021
19 May
2021
2021
28 Apr
2021
2021
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Fourth Report - The Financial Conduct Authority’s Regulation of … | HC 149 | 24 Jun 2021 | 38 | Responded |
Recommendations & Conclusions
10 results
16
Recommendation
Accepted
Fourth Report - The Financial Cond…
We therefore reiterate a recommendation made by a previous Treasury Committee, that the FCA be...
We therefore reiterate a recommendation made by a previous Treasury Committee, that the FCA be given the formal power and remit to be able to recommend formally to the Treasury changes to the perimeter of regulation, where that would enhance …
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Government Response
The government details the FCA's existing powers and actions to tackle non-compliant financial promotions and prevent consumer harm, but it does not address the specific recommendation to give the FCA formal power to recommend changes to the perimeter of regulation.
HM Treasury
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21
Recommendation
Accepted
Fourth Report - The Financial Cond…
The FCA should develop a strategy for how it will approach fraud risks that are...
The FCA should develop a strategy for how it will approach fraud risks that are outside the perimeter of regulation but involve authorised firms. That strategy should be set out in the next perimeter report.
Government Response
The government commits to developing a strategy for tackling fraud risks outside the regulatory perimeter but involving authorised firms, improving partnerships, and publishing details of this work in the next perimeter report.
HM Treasury
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28
Recommendation
Accepted
Fourth Report - The Financial Cond…
The Government has taken a positive step by introducing the primary legislation necessary to establish...
The Government has taken a positive step by introducing the primary legislation necessary to establish the LCF compensation scheme. If the Bill has a successful passage through Parliament, the Treasury should ensure a smooth running of the compensation scheme, without …
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Government Response
The Treasury is progressing work on LCF compensation scheme rules with the FSCS, which is committed to ensuring payments to eligible bondholders within six months of the Bill's Royal Assent.
HM Treasury
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30
Recommendation
Accepted
Fourth Report - The Financial Cond…
The FCA should provide us with an update on its resolution of LCF complaints by...
The FCA should provide us with an update on its resolution of LCF complaints by 30 September 2021. (Paragraph 160) Financial promotions
Government Response
The government commits to providing an update to the Committee on the FCA’s resolution of LCF complaints by 30 September 2021, noting that 98% of complainants had already received a response by 23 August 2021.
HM Treasury
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31
Recommendation
Accepted
Fourth Report - The Financial Cond…
We welcome the Treasury’s ongoing consultation on approving financial promotions.
We welcome the Treasury’s ongoing consultation on approving financial promotions. We trust that the results of the consultation will be published swiftly and the conclusions implemented as soon as possible.
Government Response
The government confirmed it published the response to its consultation on 22 June 2021 and intends to bring forward legislation to establish a regulatory gateway for financial promotion approval when parliamentary time allows.
HM Treasury
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32
Recommendation
Accepted
Fourth Report - The Financial Cond…
We welcome the steps taken by the FCA to change its approach to financial promotions,...
We welcome the steps taken by the FCA to change its approach to financial promotions, as well as introducing the “use it or lose it” programme. In future, the FCA should be more interventionist and should make more frequent use …
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Government Response
The government detailed extensive ongoing efforts and specific measures taken since 2019, including establishing a Joint Supervision and Enforcement Team, using formal powers more assertively, and developing a new data-led strategy for financial promotions, to be more interventionist and proactively disrupt harm.
HM Treasury
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33
Recommendation
Accepted
Fourth Report - The Financial Cond…
The Financial Promotion Order would benefit from reform due to the increasing risks associated with...
The Financial Promotion Order would benefit from reform due to the increasing risks associated with the exemptions that allow customers to self-certify as high net worth or sophisticated.
Government Response
The government stated it keeps the legislative framework for financial promotions under review, has commenced work with the FCA to review exemptions for high net worth and sophisticated investors, and intends to bring forward legislation to establish a regulatory gateway for promotion approval.
HM Treasury
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34
Recommendation
Accepted
Fourth Report - The Financial Cond…
The Treasury should—as a matter of priority—re-evaluate the Financial Promotion Order exemptions to determine their...
The Treasury should—as a matter of priority—re-evaluate the Financial Promotion Order exemptions to determine their appropriateness and consider what changes need to be made to protect consumers.
Government Response
The government states it is already reviewing Financial Promotion Order exemptions, specifically for high net worth and sophisticated investors, and plans to bring forward legislation to establish a regulatory gateway for approving financial promotions when parliamentary time allows.
HM Treasury
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35
Recommendation
Accepted
Fourth Report - The Financial Cond…
It is very disappointing to see that despite the numerous representations made to the Government,...
It is very disappointing to see that despite the numerous representations made to the Government, measures to address fraud via online advertising have not been included in the draft Online Safety Bill. This is a missed opportunity to act and …
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Government Response
The government confirms that fraud will be included in the scope of the Online Safety Bill, directly addressing the committee's concern. It also outlines further actions including a DCMS consultation on online advertising, FCA investigations into platforms' compliance, and an upcoming Home Office Fraud Action Plan.
HM Treasury
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37
Recommendation
Accepted
Fourth Report - The Financial Cond…
We recommend that the Government should include measures to address fraud via online advertising in...
We recommend that the Government should include measures to address fraud via online advertising in the Online Safety Bill, in the interests of preventing further harm to customers being offered fraudulent financial products.
Government Response
The government confirms that fraud will be included within the scope of the Online Safety Bill to protect against scams on social media and dating sites. It also highlights further considerations for tougher online advertising regulation and ongoing work to combat fraud.
HM Treasury
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Correspondence 6 letters
20 Oct 2021
From committee
Letter to the Chair from the Chief Executive of the FCA, regarding the TSC report on LCF, dated 30 September 2021
Parliament page
24 May 2021
From committee
Letter to the Chair from the FCA Chief Executive relating to independent reviews
Parliament page
19 May 2021
To committee
Letter from the Chair to the Economic Secretary to the Treasury, relating to London Capital & Finance
Parliament page
19 May 2021
To committee
Letter from the Economic Secretary to the Chair relating to London Capital & Finance
Parliament page
28 Apr 2021
To committee
letter from the Economic Secretary to the Chair, relating to the session the Committee held on Wednesday 21 April
Parliament page
9 Feb 2021
From committee
Letter to Chair from Rt Hon Dame Elizabeth Gloster regarding independent investigation into FCA's regulation of London Capital and Finance plc, dated 8 February 2021
Parliament page