Treasury Committee calls for changes in FCA’s approach to fraud — Scam Guards

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The Treasury Committee has called for a change in the Financial Conduct Authority’s (FCA) culture and approach to fraud in its report into the watchdog’s regulation of London Capital and Finance (LCF).

The report, headed by Dame Elizabeth Gloster, stated that the FCA had fallen short of its duty to protect customers from fraud, attributing this to “a culture that saw fraud as principally a matter for the police” and the organisation’s “lack of enthusiasm to look beyond the perimeter”.

As such, the report stated that the FCA should “develop a strategy for how it will approach fraud risks that are outside the perimeter of regulation but involve authorised firms”, stating that this strategy should be outlined in its next perimeter report.

Additionally, the committee said it welcomed the FCA’s transformation programme but called for the board to set itself an end date and improvement milestones, citing…

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