Welcome to the UKGI weekly regulation update service for Aviva ABC brokers

Link(s):

Letter from Lord Forsyth of Drumlean to Nikhil Rathi, Chief Executive of the FCA, regarding the FCA’s response of 25 April 2024 to the Committee’s letter on consultation CP24/2 (1 May 2024) (parliament.uk)

Context

On 18^th April the House of Lords Financial Services Regulation Committee wrote to Nikhil Rathi, Chief Executive of the FCA, about the FCA’s plans as outlined in its Consultation Paper CP24/2: “Our Enforcement Guide and publicising enforcement investigations––a new approach”.  The FCA responded on 25^th April, as reported in our weekly update last week.

Key points to note and next actions

Lord Forsyth of Drumlean has written again to Nikhil Rathi, acknowledging the FCA’s (lengthy) response, but:

• noted that the response did not come from Nikhil Rathi, when he expected it to come from him;
• expressed concern that the response did not directly refer to the Committee’s specific request: “the Committee intends to take evidence on this proposal and asks that you do not take further steps to implement this change until it has had the opportunity to do so and reach a final conclusion.”; and
• has asked the FCA could clarify its position on that request

In essence, the Committee has reconfirmed that the FCA should not act on publishing details of investigations before the House of Lords Inquiry has finished.  This letter was coupled with a debate about FCA effectiveness and accountability in the House of Commons, also on 1^st May.