Another "independent" banking standards commission, another FCA, another case of regulatory capture?
Following the news that Sir Richard Lambert is
to head a new banking standards body that is independent of the banks, Berg asks – can the new body stick to its mandate in being independent of the banks, or will it become captured like the FCA?
The Government response to the banking standards report highlights the failings of the FSA:-
"Many of the FSA’s failings were shared by regulators of other countries. However, this does not absolve UK regulators from blame…multiple scandals also reflect their failure to regulate conduct effectively."
– The Government’s response to the Parliamentary Commission on Banking Standards
"The FCA and PRA are new organisations. They have each set out their aspirations for a new approach. This is welcome. Whether they meet those aspirations, or whether they repeat mistakes of the past,
remains to be seen." – The Government’s response to the Parliamentary Commission on Banking Standards
Berg has found the FCA, who was advertised as being independent of the Banks and as a body with "teeth" in tackling the regulatory problems within the banking industry, to be more like a body with "false
teeth". During the FCA Review the FCA have taken their false teeth out and are consequently a mouth piece for the Banks, easily manipulated to do what the banks want and simultaneously, not what the consumer wants.
In this situation how can consumers feel comfortable knowing that a person put in position by the banks to review their "mis-sold" IRHP will have any independence at all?
The new commission is to liaise with Britain’s financial regulator as it undertakes a review of its Approved Persons Regime, due to the Government accepting "that the approved person regime has failed."
With the FCA proving unable to avoid regulatory capture by the banks, Berg hopes this second "independent" body monitoring banking standards will fare much better.