The Treasury Committee publishes Financial Conduct Authority's (FCA) internal audit reports covering external communications, management of crises and handling of market sensitive information.
Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, said:
"The FCA has had a difficult couple of years – the Davis review illustrated some of the regulator’s institutional weaknesses. The Committee will continue to keep a close eye on the FCA.
In 2014, the Committee decided to extend its scrutiny of the FCA to internal audit reports. The Committee published the first set of these last year. An examination of reports since November 2014 has also taken place, and these reports are being published today.
The reports – produced after the FCA’s extraordinary and incompetent briefing of the press in 2014 on its plans to investigate the insurance industry – shed some light on the extent to which the FCA is improving its standards, and the overall quality of its work.
A finding of one of these reports is that the FCA ‘lacked a coherent and co-ordinated process for responding to incidents and managing crises’.
Deficiencies remain in the FCA’s handling of crisis management, external communications and market-sensitive issues. This has been evident from the FCA’s curious handling of their decision to drop an investigation into bank culture. There is clearly a great deal of work left to do."
The FCA’s internal audit reports published relate to November 2014 and are the second set of such reports to be published. The first set of the FCA’s internal audit reports, covering the period between January 2014 and September 2014, were published in October 2015.