Christian Matheson – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Christian Matheson on 2015-10-09.

To ask Mr Chancellor of the Exchequer, what recent discussions he has had with the Financial Conduct Authority on the misselling of interest rate swaps.

Harriett Baldwin

Treasury Ministers and officials meet with a wide range of organisations as part of the usual policy making process.

It might be useful to know that the Treasury publishes a list of ministerial meetings with external organisations. This is available online at: www.hm-treasury.gov.uk/minister_hospitality.htm.

As you are aware, the FCA is an independent non-governmental body responsible for regulating and supervising the financial services industry. Although the Treasury sets the legal framework for the regulation of financial services, it has strictly limited powers in relation to the FCA. In particular, the Treasury has no general power of direction over the FCA and cannot intervene in individual cases.

The independence of the FCA is vital to the role it provides as a safety net for consumers with complaints against financial services firms. Their credibility, authority and value to consumers would be undermined if it were possible for the Government to intervene in their decision-making.

The FCA regularly publishes information on the progress of the redress scheme. This can be found here: www.fca.org.uk/consumers/financial-services-products/banking/interest-rate-hedging-products.

You may be aware that the Treasury Select Committee’s report into SME lending, published on 10 March, recommended that the FCA collect the information necessary to establish whether there are systemic failures in the redress scheme. The FCA has responded and the Committee, which published this response on 12 October 2015. It can be found here: www.parliament.uk/documents/commons-committees/treasury/Responses/Financial-Conduct-Authority-response-to-Conduct-and-Competition-in-SME.pdf