The two-year old Financial Conduct Authority (FCA) has been slammed as a “dysfunctional” body by MPs, in a damning report released today.
The Treasury select committee said the institution’s failings are serious enough to warrant an independent review, and recommends that MPs launch an investigation into the regulator following the General Election.
The row has erupted after the committee’s investigation of an FCA press briefing containing mistakes. The briefing caused a crash in share prices in some of the UK’s largest insurers.
According to the FT, Treasury select committee chairman Andrew Tyrie said: “By breaching its own listing rules, it created a false market in life insurance shares. In doing so it put its own statutory objectives at risk.”
“The evidence from this episode suggests that problems may still exist at the FCA. It is not yet clear to the committee that the FCA has fully grasped this.”
The report singled out FCA chief executive Martin Wheatley for presiding over a media strategy that is not working, and said that the board had “failed in its duty to identify and manage risk”.