Financial Conduct Authority  

Govt denies new powers for regulator

It added: "The government agrees that the FCA must not be constrained from providing warnings on financial products that may cause consumer detriment.

"Under section 139A of the Financial Services & Markets Act 2000, the FCA has the power to give guidance on 'any matter which it appears to the FCA to be desirable to give information or advice'.

"The FCA regularly highlights the risks faced by consumers who engage with activities outside of the perimeter, such as through issuing consumer warnings and guidance, including recent examples of mini-bonds and cryptoassets." 

Catherine McKinnell MP, interim chairwoman of the Treasury committee, said it was "disappointing" the government does not see the case for providing a formal power for the FCA to request changes to the perimeter.

She said: "It would formalise the relationship that the committee are told already exists between ministers, officials and the FCA, thus providing greater transparency to the process. 

"The Treasury committee will continue to raise these issues in our evidence sessions with HM Treasury and the FCA." 

Ms McKinnell added: "There are signs in the government’s response to our report that it has started to engage with our recommendations on the remit and powers of the FCA. We look forward to the further work promised in this response."

An HM Treasury spokesperson said: "To ensure we get the balance right, we regularly monitor the system and are engaging with the committee’s recommendations on the FCA and regulation.

"By taking this approach, we can continue to attract business and create jobs, while making sure consumers are properly protected."

rachel.mortimer@ft.com

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