The FCA: Watchdog or Lapdog?

The Financial Conduct Authority (FCA) has once again been thrust into the spotlight, not for its stellar regulation, but for its alleged ineptitude. The APPG on Investment Fraud and Fairer Financial Services has dropped a bombshell report, painting the FCA as “incompetent at best, dishonest at worst.” The regulator’s response? A masterclass in dodging responsibility.

See BBC Report.

And Moneybox on Radio 4 Sounds.

Excuses, Excuses: The FCA’s Defence

• "That Was Ages Ago": The FCA is quick to dismiss the APPG’s findings as relics of the past, claiming lessons have been learned. Yet, fresh victims are piling up every day, proving that history has a habit of repeating itself—especially when the lessons are ignored.

• "We’ve Transformed": They’re keen to trumpet reforms, like blocking 10,000 scam adverts—a commendable effort until you realise it’s a fraction of the millions still in circulation. Transformation? More like a cosmetic facelift.

• "We’re Independent… Sort Of": The FCA insists it’s free from government influence, yet also dutifully follows the Chancellor’s growth agenda. Independence seems to depend on the day of the week—or the audience.

The Reality Check

• The Revolving Door: There’s a cosy carousel between the FCA and the financial sector, with regulators moving to cushy City jobs and vice versa. Who’s regulating whom? Good question.

• Shielded from Accountability: Thanks to its immunity from civil prosecution, the FCA remains untouchable, no matter how many mistakes it makes. Victims? Left out in the cold.

• Turning a Blind Eye: Current scandals are conveniently overlooked, with the FCA preferring to focus on the “successes” of tackling past issues. Meanwhile, fraudsters are still operating freely under their watch.

A Culture of Defensiveness

• Closed Ranks: The FCA, City, Government, and Treasury form a united front to deflect criticism and dodge accountability. It’s like a dysfunctional family Christmas—but with higher stakes.

• Blame the Victims: By minimising the issues and deflecting responsibility, the FCA paints victims as the problem. Gaslighting? Check. Denial? Double-check.

Time for Change

The APPG’s report isn’t just a critique; it’s a wake-up call. The FCA’s habit of marking its own homework has left the British public exposed, trust eroded, and fraudsters emboldened. Claims of “appropriate protection” ring hollow when financial crime remains the UK’s most reported offence.

Accountability isn’t optional, and excuses won’t cut it. The FCA needs to step up, stop spinning narratives, and actually protect the people it claims to serve. Anything less is just another chapter in a long, sorry saga.