Treasury Committee to quiz FCA on bank review

Sarah Davidson

January 7, 2016

The Treasury Committee has asked John Griffith-Jones, chairman of the FCA, and Tracey McDermott, acting chief executive, to appear before it to explain why they dropped a review into bank culture.

Andrew Tyrie MP, chairman of the Treasury Committee, said: “The Financial Conduct Authority’s decision to drop its review of bank culture does seem curious. The decision to undertake this review was, after all, part of the FCA’s business plan for 2015.”

The committee will take evidence from Griffith-Jones and McDermott on Wednesday 20 January to assess the FCA’s efforts to fulfil the enhanced statutory responsibilities given to it by parliament over the past few years.

Tyrie said: “It is not the dropping of the review that is crucial. What matters is the full implementation of the reforms recommended by the Vickers and Banking Commissions and set out to improve conduct in banks.

“The FCA has a tough job. Just as the banks are in the process of sorting themselves out, so are the regulators. There is a long way to go. The crash exposed shortcomings in standards in regulators almost as bad as in banks.”

Tyrie said that the committee was looking for assurance from the FCA that it is up to this job, and added: “Getting it right – securing better protection for consumers and markets while at the same time ensuring they don’t make life unduly burdensome for business, from which everyone would ultimately be the loser – is a big undertaking.”

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