The Financial Services Authority’s (FSA) head of enforcement Tracey McDermott came under fire from MPs yesterday for failing to tackle big banks and instead picking on smaller financial firms.
MPs on the Parliamentary Commission on Banking Standards accused the FSA of being too close to the big banks and said it was not effective at regulating those at the top.
McDermott (pictured) accepted that the regulator struggled to target those high up, and conceded that it was easier to bring enforcement against smaller firms.
'In relation to the large institutions it has proved extremely difficult to get at the people at the top,’ she said.
‘[With small firms] the evidence is much easier. I would accept it is easier.'
John McFall asked McDermott why no one at from a bank had been charged in relation to payment protection insurance mis-selling.
McDermott said the FSA had not been as effective at holding people to account in the past and this was something it had to learn to do better.