- Lord Leigh accuses FCA of hindering economic growth in merger process
- FCA’s timeline criticized for delay in finnCap and Cenkos merger approval
- Challenging market conditions impact mid-sized London brokerage firms
Lord Leigh of Hurley considers the City regulator a “block to economic growth” as his business merges with Cenkos.
A senior Tory peer criticized the City watchdog’s timeline for sanctioning the merger between two prominent London stockbrokers.
Lord Leigh of Hurley, a key figure in Conservative fundraising circles and a veteran banker, accused the Financial Conduct Authority (FCA) of functioning as “a block on economic growth” during a debate on the Financial Services and Markets Bill, which received Royal Assent this week.
Lord Leigh alluded to the FCA’s approval of finnCap and Cenkos’ merger in March on Friday.
The competitor is a senior associate at Cavendish Corporate Finance, which finnCap acquired in 2018.
According to a market source, the partnership with Cenkos is unlikely to receive formal sanction for several months.
Lord Leigh told his peers on Thursday that the FCA is still extremely dissatisfied with the length of time it takes to progress transactions and execute transactions, which is a major impediment to economic development, one of the FCA’s new objectives.
He requested that Treasury ministers “ensure that the FCA is aware of its new objectives and requirements and that this is implemented in practice.”
In the initial announcement of the transaction, the companies stated, Taking into account the FCA approval timeline. The scheme is expected to take effect in the third calendar quarter of 2023, which may be met.
The merger of finnCap and Cenkos was announced in a challenging market for mid-sized London brokerage firms. With a lack of public company listings negatively influencing their revenue.
