Committee publication · Correspondence · 28 January 2025
Letter to Nikhil Rathi, Chief Executive Officer, Financial Conduct Authority, relating to oral evidence given before the Committee in December 2024, dated 19 December 2024
From: Treasury Committee
Summary
The Treasury Committee chair writes to FCA Chief Executive Nikhil Rathi following his December 2024 oral evidence, seeking clarification on the FCA's pension scheme accounting and funding status, the Board's risk priorities, enforcement activity 'reset' plans, consultation feedback on 'naming and shaming' proposals, and the FCA's work on domestic financial abuse and mortgage coercion.
Key findings
- FCA committed to provide specific accounting treatment of actuarial losses on its pension scheme; committee questions why the scheme is described as 'well funded' given recent actuarial losses
- Committee seeks explanation of what constitutes 'red risk concerns' for the FCA Board, following Alder's comment that pension deficit was not a priority due to other competing concerns
- FCA's announced 'major reset' in enforcement approach requires clarification on what prompted the discussion and what the overall plan entails
- Committee requests details on how FCA has adapted consultation processes following concerns raised about its 'naming and shaming' proposal, including how a financial system disruption test would be measured
- Committee inquires into FCA's work on domestic financial abuse and mortgage coercion, specifically whether victims could change joint mortgages without abuser consent under existing rules or if legislation is needed
Tone
ProceduralTopics
financial-regulationpension-schemeenforcement-activitiessafeguardingmortgage-regulation
Key actors
Nikhil Rathi, Ashley Alder, Stephen Braviner Roman, Dame Meg Hillier, Treasury Committee, Financial Conduct Authority, Surviving Economic Abuse
Notable line
“What prompted this discussion, and what is the overall plan following this discussion?”
Key Quotes
“During the session, you committed to provide the Committee with the specific accounting treatment of the actuarial losses on the FCA's pension scheme”
“You noted that the pension deficit was not a "red risk concern" for the Board, and Mr Alder commented, "There are too many other things".”
“Last month Mr Alder described recent consultations on changes to FCA enforcement activities as part of "a broader discussion about quite a major reset in the way in which”
Source · parliament.uk record ↗