Gina Miller urges Treasury Select Committee to suspend flawed FCA consultation into compensation scheme for its own regulatory failures

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The True and Fair Campaign, led by campaigner and businesswoman Gina Miller and leading fund manager Alan Miller, has sent an Open Letter to the Chairman and members of the Treasury Select Committee calling on the Committee to investigate the circumstances in which the Financial Conduct Authority (FCA) launched a Consultation to reform the Compensation Scheme for victims of financial loss resulting from regulatory failure by the FCA, as required by the Financial Services Act 2012.

Not only was the Consultation launched quietly over the summer holidays, it has a short consultation period that the Millers argue contravenes the Principles of Consultation code, especially in view of the effects of the pandemic. The proposed reforms would not just significantly limit the scope for claims, but would introduce a cap of GBP10,000 and unfairly disadvantage victims of financial loss.   

Gina Miller says: “It is scandalous that the FCA is once again acting in an anti-consumer manner by attempting to disadvantage victims of their own regulatory failings. Who could possibly have thought it sensible, after a litany of financial scandals, compounded by a global pandemic that has damaged financial services businesses and consumers alike, for the FCA to hold a consultation on its own performance in the depths of the summer holidays? To also hold this Consultation before the three Independent Reviews into HBOS Reading, London Capital & Finance and Connaught are published, appears calculated. The way this consultation has been contrived is a travesty of justice and tragedy for UK consumers.” 
Alan Miller of the True and Fair Campaign, says: “We agree there needs to be a review of this compensation scheme, not least due to the pitifully low pay-outs, which has seen the total amount paid out by the FCA over the last 18 months to successful complainants total just GBP13,475. But the review should be conducted in a comprehensive, considered, and objective manner. Public confidence demands that this consultation delivers on what it says it is – an opportunity for victims of financial wrongdoing to seek redress.”