The Financial Conduct Authority (FCA) has survived a vote of no confidence by MPs after coming under fire in a House of Commons debate after for its treatment by the Treasury.
Since Martin Wheatley was told by UK Chancellor that his contract would not be renewed, the FCA has been accused of becoming too pro-banking at the expense of the consumer on a number of occasions.
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These included a decision to drop a thematic review into banking culture, as well moves to put a final date for people to claim compensation for mis-sold PPI.
Invariably, these accusations have included questions about the Treasury’s influence over the FCA.
The backbench debate was originally proposed by Conservative MP for Aberconwy Guto Bebb.
Bebb opened the debate, stating: "I beg to move, that this House believes that the Financial Conduct Authority in its current form is not fit for purpose; and has no confidence in its existing structure and procedures.
During the debate, the majority of MPs expressed dissatisfaction with at least parts of the regulators conduct. Labour MP John Mann, said that where he thought it should be strengthened, it had been weakened.
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By GlobalData"With its culture reviewed, dissipated and destroyed, it is being neutered," he said.
He added that ‘consumer champions’ at the regulator had been systematically removed over the past four months.
Meanwhile Mark Garnier, Conservative MP, said that evidence supported the perception that the regulator had a pro-bank stance.
However, he warned: "Have we perhaps, on occasion, been guilty of what sports commentators do when a poor goalkeeper successfully saves many, many shots, but, when he lets through one crucial goal, is criticised by everybody for not being up to the job?"
To Bebb replied: "I am an Everton football supporter, and we have been patient with Tim Howard. It is not that he made one mistake and allowed one goal to be scored; he has conceded half a dozen such goals this season. It is the same with the regulator. It is not the one mistake that we complain about; it is a pattern of behaviour."
Ultimately no vote was held, with a number of MPs suggesting that a vote of no confidence was not the right course of action to take, despite the criticisms.
Bebb closed out the session, saying: "The House should reflect on the fact that we heard 13 Back-Bench speeches but only two were mildly supportive of how the FCA is operating. There is an important message in that point: the FCA does need to reform.
"Although we all hope that the new chief executive will be a fresh brush within the FCA, he should be aware that he has a lot of work to do to rebuild confidence in the regulator."
