Citywire for Financial Professionals
Stay connected:

View the article online at

FCA boss denies Treasury quashed bank inquiries

City regulator denies claims it was forced to drop banking review and inquiry into HSBC's Swiss private bank due to government pressure.

FCA boss denies Treasury quashed bank inquiries

City regulator the Financial Conduct Authority (FCA) has denied it was forced to drop inquiries into the banks due to pressure from the Treasury.

FCA chairman John Griffiths-Jones and acting chief executive Tracey McDermott (pictured) appeared before the Treasury Select Committee after news emerged over the Christmas period that the regulator had dropped a review into banking culture and an investigation into allegations HSBC's Swiss private bank helped wealthy clients evade tax.

McDermott rejected accusations of Treasury interference at the regulator, particularly the idea that Megan Butler, an executive director at the Bank of England’s Prudential Regulation Authority (PRA), had influenced the regulator’s decision not to publish a thematic review into culture at UK banks.

‘The idea that Megan came in and killed the review is nonsense,’ she said.

Griffith-Jones meanwhile said he had been surprised by chancellor George Osborne's decision not to renew the contract of previous FCA chief executive Martin Wheatley. The move was widely seen as a response to complaints from the banking sector over Wheatley's combative approach.

‘The board had been happy with Mr Wheatley’s performance,’ Griffith-Jones said. ‘What I definitely did think is that Martin had done a really good job in pretty brutal circumstances up to that moment.He was somewhat pre-empted by the chancellor making his decision.’

The FCA is currently looking for a new boss. McDermott had been seen as a likely successor, but was forced into issuing a statement over her future after Osborne told BBC Radio 4's Today programme she had ruled herself out of the running for the post.

McDermott told MPs she was 'not exactly delighted' Osborne broke the news on live radio. ‘It’s a big issue for your team when they say you’re going,’ she added. ‘It would be preferable to be an announcement in conjunction with who the new chief executive would be. I wasn’t exactly delighted but these things happen,' she said.

2 comments so far. Why not have your say?

robert marshall

Jan 21, 2016 at 17:08

Since when does Megan Butler dictate what the FCA has to do. As for Wheatley's performance what else could Griffiths -Jones say. it would seem odd that he didn't see that when the CEOL becomes the news he has to go. But given the new CEO is interviewed and appointed by the FCA Chair and the Chancellor it doesn't look like Griffiths-Jones put up much of a fight.

Which means not only is the FCA not independent and cow-tows to a political entity,it also supplicates policy to the benefit of the PRA

If ever thee was a case of questioning the value and priorities of the FCA it is now.

There should be a FOI request into what exactly took place between all parties that led to the dismantling of the investigation into banking culture until then its clear for real-time information on what the FCA does and doesn't do everyone had best ask 11 Downing Street or the PRA

report this

Alan Tonks

Jan 21, 2016 at 17:18

If you believe that you will believe anything!!

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts

In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the shares

  • Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us


Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add to your safe senders list so we don't get junked.

Sorry, this link is not
quite ready yet