Fourth Report - The Financial Conduct Authority’s Regulation of London Capital & Finance plc

The government response describes the FCA's holistic recruitment approach for senior leadership roles, including internal succession planning and global searches, but does not address the committee's conclusion regarding Mr. Bailey's objections or the 'responsibility' versus 'culpability' distinction.

The government response discusses the application of Senior Managers Regime principles to FCA senior managers and its impact on accountability and variable remuneration for control failings, but does not address the committee's specific criticism regarding the recruitment process for the Executive Director for Transformation role.

The government's response provides a general update on the FCA's transformation and business plan, but it does not specifically address the recommended changes to recruitment processes for critical roles or the use of interim appointments.

The government response focuses on ensuring consumer awareness of risks in unregulated activities, preventing misleading impressions of regulation, and the 'Use it or Lose it' exercise to remove unused firm permissions, but does not address the committee's concerns regarding senior executive accountability within the FCA.

The government response outlines its annual perimeter report and engagement with the Treasury on perimeter issues, without addressing the committee's conclusion regarding the FCA's culture and the need for it to be more proactive, agile, and decisive.

The government's response focuses on the regulatory perimeter and interaction with HM Treasury, providing no specific commitment or discussion regarding the FCA setting an end date, public milestones, or cultural maintenance for its transformation programme.

The government response discusses the FCA's resource allocation, regulatory perimeter changes, business plan, and fees consultation, but does not address the committee's conclusion about contact centre failings or welcomed operational improvements.

The government's response discusses the FCA's surveillance work, partnerships with law enforcement, and a forthcoming perimeter report, completely failing to address the recommendation regarding contact centre policies and training.

The government's response discusses the complexities of reconfiguring the FCA to prosecute fraud and its limitations in this area, rather than addressing how the FCA will improve its oversight of firms' activities both within and outside the regulatory perimeter to avoid missing red flags.

The government's response detailed the permanent ban on mass marketing of Speculative Illiquid Securities and ongoing consultations on the Prospectus Regulation, but did not address the recommendation for the FCA to require authorised firms to explicitly state risks associated with their unregulated activities.

The government response discusses improving consumer support and guiding consumers towards better investment decisions through ongoing work, but does not address the recommendation for the FCA to detail its supervisory strategies in its annual perimeter report.

The government's response focuses entirely on the LCF compensation scheme and complaints, without addressing the conclusion regarding the complexity of the regulatory perimeter or the FCA's limited powers and resources beyond it.

The government response provides an update on the individual consideration and resolution of LCF complaints, promising a further update to the Committee by 30 September 2021. It does not address the committee's broader points about ongoing dialogue on the perimeter or the need for further action concerning perimeter movement.

The government response discusses concerns about Financial Promotion Order exemptions for high-net-worth and sophisticated investors, highlighting them as a vulnerability requiring legislative changes. It does not address the committee's conclusion regarding the FCA's broad remit or the timescales for its transformation programme.

The government's response discusses online financial scams and Google's recent policy changes, and the need for legislation, completely failing to address the recommendation regarding the Treasury's consideration of the FCA's remit linked to the FCA's transformation programme.

The government's response focuses on ongoing work with online platforms to combat financial scams and the Online Safety Bill, rather than addressing the committee's specific recommendation regarding FCA resources and the Treasury's perimeter policy statement.

The government's response focuses on the inclusion of fraud in the Online Safety Bill, upcoming consultations on online advertising, and a wider Fraud Action Plan, but does not explicitly state that the FCA will continue working with platforms to remove misleading adverts quickly.