Lord Myners – 2014 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Myners on 2014-03-31.

To ask Her Majesty’s Government whether they will establish a formal investigation, independent of the Financial Conduct Authority (FCA), into the FCA’s handling of the announcement it made via the press on 28 March of an investigation into closed insurance funds; and whether they have made an estimate of the financial consequences of the creation of a possible false market in insurance securities as a result of the initial announcement and subsequent amendments.

Lord Newby

The Financial Conduct Authority (FCA) Board has announced an investigation which will be independent of the FCA executive. A senior independent lawyer will investigate what went wrong and make appropriate recommendations.

The Chancellor has written to the Chair of the FCA setting out the questions that the investigation should answer. This includes the question of to what extent a false or disorderly market was present in the period before the FCA issued its statement of clarification. The letter was copied to the Treasury Committee and has been published on the Treasury’s website.