Chancellor launches review into FCA and PRA enforcement arrangements

The Chancellor of the Exchequer George Osborne is calling for evidence to find out if the current enforcement arrangements by the PRA and FCA are fair and effective.

The review, announced yesterday, gives a deadline of 4 July for evidence to be submitted. Roundtable discussions with interested parties will also be held in June.

The Treasury said the regulators’ enforcement powers are wide ranging and include the power to fine firms and individuals and the power to ban individuals from operating in the financial services industry.

Additionally, the regulators have considerable flexibility within broad statutory parameters to design their respective administrative processes to support the exercise of these powers.

The Treasury said: “For enforcement action to be effective, wrongdoers must believe that they face a real and tangible risk of being held to account and must expect to face meaningful and proportionate sanctions.

“The general public must also have confidence that wrongdoers will be subject to sanctions and that the enforcement machinery will be robust enough to deliver those sanctions when wrongdoing occurs.”

Osborne added: “The government has taken action to provide a welcoming business environment for those in the financial services industry who play by the rules whilst ensuring that those intent on breaking them are held to account.

“I am committed to ensuring that the financial services regulators pursue a model of enforcement that delivers the appropriate balance of fairness, transparency, speed and efficiency.”