Source: Insurance Age | 02 Feb 2016
Categories: Insurer, Broker
Tags: FSCS | FOS | FCA | government
MPs raise Early Day Motion in Parliament.
Kirsten Oswald, SNP Member of Parliament for East Renfrewshire, is the primary sponsor in an Early Day Motion (EDM) strongly critical of the Financial Conduct Authority (FCA), Financial Ombudsman Service (FOS) and Financial Services Compensation Scheme (FSCS).
The EDM begins by raising concerns at “the continuing failure of regulation enforcement and restoration in the financial services sector”.
In particular the move, backed by 10 further MPs, highlights the FCA’s “failure to respond effectively” to the loss of over £100m from 1,500 investors in the Connaught Fund.
It also challenges the abandonment of the planned review of banking culture saying the two elements are further evidence of the accuracy of the Treasury Committee’s description of the FCA as an agency “with deep cultural problems”.
The formal motion submitted to Parliament pinpoints its concern around a series of elements linked to Connaught.
These include that even when the FOS has awarded compensation investors can face an expensive court action to secure payment only to find that their adviser has insufficient capital to meet the claim and no indemnity insurance against which the claim can be enforced.
It concludes that there is mounting evidence that “the FCA, FOS and FSCS triumvirate is not fit for purpose”.