Asked by: Sarah Coombes (Labour - West Bromwich)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the effectiveness of the Financial Conduct Authority's powers to seek redress for the victims of financial fraud.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government takes the issue of fraud very seriously and is dedicated to protecting the public from this devastating crime.
In October 2024, the Payment Systems Regulator (PSR) introduced a mandatory reimbursement regime for authorised push payment (APP) scams which take place over the Faster Payments system, as required by the Financial Services and Markets Act (FSMA) 2023. The PSR’s regime requires payment service providers to reimburse victims for losses up to £85,000 for scams which took place after 7 October 2024.
In cases where consumers have been impacted by financial fraud and are not covered by these rules, they should contact their bank in the first instance. Victims may have access to recourse through the Financial Ombudsman Service (FOS), which can consider individual complaints between consumers and financial firms. This includes on fraud providing the activity is within the FOS’s jurisdiction, which is set by the Financial Conduct Authority (FCA). The FOS can consider whether or not the firm has acted fairly, however, any criminal investigation would be a matter for the police.
HM Treasury is working with colleagues in the Home Office as they develop a new, expanded Fraud Strategy. This will be published in due course as part of the Government’s Plan for Change and in line with our manifesto commitments.
Asked by: Sarah Coombes (Labour - West Bromwich)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the performance of the Financial Conduct Authority in balancing its confidentiality obligations with the need to provide transparency and effective communication to individuals who report potential financial misconduct.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The government meets regularly with the FCA to discuss a range of topics. The government is content that the legislative framework, set by parliament, which gives the Financial Conduct Authority (FCA) powers to supervise the financial services sector and enforce rules, is appropriate, and that the FCA has the correct tools available to enable it to investigate and act on evidence of malpractice and criminality.
The FCA is required by legislation to have regard to the principle that regulators should exercise their functions as transparently as possible. The FCA is also required not to disclose confidential information it receives in the course of carrying out its functions, with limited exceptions including where required to carry out its functions or otherwise required by law.
The government expects the FCA to act in accordance with high standards of transparency and operational efficiency, and will continue to hold the FCA to account for how it exercises its functions.
Asked by: Sarah Coombes (Labour - West Bromwich)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions she has had with the Financial Conduct Authority' on it's ability to act evidence of (a) malpractice and (b) criminality.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The government meets regularly with the FCA to discuss a range of topics. The government is content that the legislative framework, set by parliament, which gives the Financial Conduct Authority (FCA) powers to supervise the financial services sector and enforce rules, is appropriate, and that the FCA has the correct tools available to enable it to investigate and act on evidence of malpractice and criminality.
The FCA is required by legislation to have regard to the principle that regulators should exercise their functions as transparently as possible. The FCA is also required not to disclose confidential information it receives in the course of carrying out its functions, with limited exceptions including where required to carry out its functions or otherwise required by law.
The government expects the FCA to act in accordance with high standards of transparency and operational efficiency, and will continue to hold the FCA to account for how it exercises its functions.