Treasury Committee urges expansion of FCA's powers

Expanding the 'regulatory perimeter'

The House of Commons Treasury Committee has urged HM Treasury to extend the remit and powers of the Financial Conduct Authority (FCA) in efforts to avoid potential harm in the future caused by unregulated SME lending, "mortgage prisoners", mini bond firms like London Capital and Finance, as well as crypto scams.

It follows frustration voiced by FCA chief executive Andrew Bailey and FCA chair Charles Randell about the extent of the so-called "regulatory perimeter", which determines what the regulator can and cannot regulate. FCA: Woodford affair highlights need for post-Brexit regulatory shake-up The FCA's recently published report on the perimeter saw Bailey note that the question of its responsibilities had been particularly important in 2019 as "firms operating on the edges of the perimeter have recently caused serious harm to consumers". Meanwhile, Randell recently told the Treasury Com...