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The FCA’s Great Escape: Hiding Behind the Growth Agenda Flag

Writer's picture: Steve ConleySteve Conley

In yet another dazzling display of bureaucratic evasion, the Financial Conduct Authority (FCA) has masterfully sidestepped accountability once again. This time, rather than addressing the damning claims of its own ineffectiveness, it has opted to hoist the government’s ‘growth agenda’ flag as a convenient shield.


The latest supplementary report from the All-Party Parliamentary Group (APPG) on Investment Fraud and Fairer Financial Services shines a light on the FCA’s habitual pattern: ignore criticism, dismiss stakeholders, and, when all else fails, claim allegiance to a higher power—the government’s economic strategy.


Defensive Evasion: The FCA Playbook

Following the APPG’s original November 2024 report, which catalogued regulatory failures spanning from London Capital & Finance to the British Steel Pension Scheme debacle, the FCA had an opportunity to engage constructively. Instead, it chose to respond with an impenetrable wall of silence, vague platitudes, and statistical misdirection.


Bob Blackman, APPG co-chair, expressed exasperation at the FCA’s reaction, noting that the regulator seems locked in a state of denial, unable (or unwilling) to acknowledge evidence-based criticisms. Among the FCA’s predictable deflections:

  • Ignoring Requests for Dialogue: The regulator has yet to engage in meaningful discussions with the APPG.

  • Cherry-Picked Statistics: The much-vaunted “85% of stakeholders” who allegedly believe the FCA protects consumers remain elusive, with no credible source backing this claim.

  • Historic Whitewashing: The FCA dismisses concerns as ‘historic’ despite the APPG focusing on ongoing scandals such as Woodford, WealthTek, Philips Trust Corporation, and Car Finance.


‘Friends in High Places’ Strategy

Rather than facing scrutiny head-on, the FCA has instead decided to align itself with the government’s economic growth agenda—a move so transparent it would be laughable if the consequences weren’t so dire. By conveniently tying itself to the government’s wider financial objectives, the FCA is attempting to reframe criticism of its consumer protection failures as an attack on the UK’s economic ambitions.


APPG Vice Chair Lord Davies of Brixton was blunt in his assessment:

“The FCA proceeds from one scandal to another, each time eroding trust and confidence in the system. The adverse publicity this generates undermines the very growth they claim to be supporting.”

Put simply: if the FCA’s inability to regulate effectively is allowed to persist, the financial sector’s credibility—and, by extension, the UK’s economic strength—will continue to crumble.


The APPG’s Unwavering Persistence

In a direct challenge to the FCA’s ‘historic issues’ defence, the APPG’s supplementary report will be released in instalments, each dissecting a recent scandal. The aim? To make it impossible for the FCA to dismiss these cases as relics of the past.


As the APPG intensifies its pressure, one thing is clear: regulatory evasion dressed as economic strategy is a flimsy disguise. The red flags being waved by the APPG aren’t going away, no matter how much the FCA pretends otherwise.


So, what’s next? More deflection? More misdirection? Or will the FCA finally acknowledge that regulatory credibility and economic growth are not mutually exclusive? One can only hope—but history suggests we shouldn’t hold our breath.


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