- Ministers will regain control over the appointment of the Financial Regulators Complaints Commissioner.
- The move comes amid government dissatisfaction with regulators’ emphasis on promoting economic competitiveness.
- The current commissioner, Amerdeep Somal, will resign when her term expires, and the position will be advertised soon.
The appointment of a commissioner responsible for investigating complaints against City and financial watchdogs will be reclaimed by ministers.
Treasury seizes control over the appointment of a senior figure to investigate complaints against the United Kingdom’s financial watchdogs in response to government dissatisfaction with regulators’ emphasis on promoting economic competitiveness.
Ministers will choose the next Financial Regulators Complaints Commissioner, a position previously held by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
After Amerdeep Somal resigned in November after her three-year term expired, sources said the position would be advertised this week.
Ms. Somal will become chair of the Law Society at the beginning of the following year.
The political backdrop of the appointment makes the position transfer significant.
In the past year, there has been an escalation of tensions between the Treasury and the City and banking regulators. With the most recent illustration being the dispute over Nigel Farage’s Coutts accounts, which erupted last month.
Senior Conservative lawmakers, including Sir Iain Duncan Smith, have demanded an investigation into whether the FCA’s emphasis on diversity in financial institutions has resulted in a crackdown on consumers whose opinions are not deemed to be inclusive.
The FCA has denied that its approach contributed to the banking culture that sparked the debunking controversy.
Andrew Griffith, the City minister, is rumored to have written a foreword to the job advertisement in which he states, “The Complaints Commissioner is essential for providing robust and independent oversight of how the financial services regulators have carried out their roles.”
Also Mr. Griffith will add that the new commissioner will be nominated by the government, not the regulators, boosting independence.
Adding to this would be “new reporting requirements that will ensure greater transparency regarding how regulators respond to the Commissioner’s recommendations,” he will say.
Our financial services regulators play an essential role in regulating and supervising the financial services industry. And their ability to act decisively is vital to millions of American consumers and businesses.
However, this must be weighed against the necessity of holding regulators accountable for their actions.
According to insiders, the Complaints Commissioner handled over 420 cases and made dozens of recommendations in the past year.
The commissioner is also responsible for investigating Payment Systems Regulator complaints.
