The study found that nearly one in three (30%) UK retail traders expect returns of at least 30% from crypto trading in 2024, largely driven by the belief that a Trump administration would ease regulatory restrictions and boost the market.

An additional 37% anticipate returns of 10% or more, while 20% expect up to 10% in gains. Only 3% foresee no returns, and 10% were unsure.

More than half (56%) cited Trump’s potential impact on crypto markets as their main reason for optimism, while 51% pointed to growing confidence in the sector and 46% highlighted strong recent performance.

Looking back, around a quarter (26%) of crypto traders reported returns of 30% or more in 2023, with a further 37% achieving at least 10% in gains.

However, 7% admitted to losing money, while 6% either made no returns or were uncertain about their performance.

Third of crypto investors believe they could raise a complaint with FCA

Catarina Donat Marques, head of European retail strategy at GraniteShares, said: “The price of Bitcoin increased by around 125% in 2023 and broke the psychologically important $100,000 barrier, with the US presidential election playing a major role.

“Other factors, such as the launch of spot ETFs in the US and strong growth in crypto-related companies like MicroStrategy and Coinbase, have also contributed.”

GraniteShares’ leveraged ETPs have reflected this trend. The firm’s 3x Leverage Coinbase (COIN) ETP has returned 39.71% year to date, while its 3x Leverage MicroStrategy (MSTR) ETP has risen by 66.59%.

The research also found that nearly a third (32%) of retail traders now consider cryptocurrency and digital assets to be mainstream investments.

Additionally, 21% believe the market has become less volatile, with 26% crediting improved regulation following the 2022 crypto winter, which saw the market drop by 70%.

The post UK crypto traders banking on Trump for major gains appeared first on Money Marketing.

This development marks a significant step in improving efficiency for financial advice firms.

The integration, enabled through Transact’s Remuneration API, allows thousands of clients’ adviser fees to be securely and automatically transmitted to CURO, the financial-planning software provided by Time4Advice (T4A).

The process ensures seamless reconciliation based on pre-set tolerances, reducing administrative workload and minimising errors.

T4A was acquired by IntegraFin, Transact’s parent company, in 2021.

The integration aligns with Transact’s long-term strategy of fostering collaboration between platforms and software providers to enhance efficiency and allow advisers to spend more time with clients.

Plannr and Transact team up to ‘supercharge’ efficiency of advisers

Setting up the API in CURO is straightforward, requiring appropriate user credentials and two-factor authentication for added security.

The system automatically processes remuneration data, improving workflow efficiency for advice firms.

Tom Dunbar, deputy CEO of Transact, said: “Our strategy is to make financial planning easier. A key part of this strategy is building a more integrated ecosystem between Transact and back-offices.

“Integrations reduce re-keying and create efficiencies, helping advisers grow and serve more clients. This latest API integration with CURO is another important step forward.”

Mitchell Philpott, managing director of T4A, said: “We are delighted to see the Remuneration API with Transact already delivering efficiencies through automation.

“CURO will continue to streamline advice processes, reducing manual data entry so advisers can focus on financial planning.”

Acumen Financial Planning Ltd, a participant in the pilot project, added: “This automation will save us significant time each month, eliminating the need to manually download, prepare, and upload files.

“It has streamlined our processes across multiple brands and payments.”

The post Transact and CURO automate adviser-fee reconciliation appeared first on Money Marketing.

As I think everyone in the pensions sector knows, I have been a huge advocate of the self-invested sector for decades, due to the flexibility of investments and tax advantages.

SSASs also offer a useful tool to the new Government in respect of their well-publicised growth aspirations. After all, it’s a solution that has the opportunity to support retirement saving as well as offering investment into small- and medium-sized businesses.

But I continue to be concerned and indeed frustrated by some of the consequences of changes implemented as part of A-Day in April 2006 – namely, the removal of the requirement to have a compulsory pensioneer trustee. Instead, the rules required that a scheme administrator was appointed.

The challenge here is that practically any individual could be a scheme administrator, even if they had little knowledge of pensions or regulations. This current arrangement is a risk that must be mitigated with the introduction of additional regulation.

In my eyes, there is a significant risk that non-professional scheme administrators may not be equipped to discharge the trustee responsibilities as well as maintaining regulatory knowledge and adapting to key changes – for example, the inclusion of unused pension funds in the scope of inheritance tax.

Practically any individual could be a scheme administrator, even if they had little knowledge of pensions or regulations

There may be conflicts of interests for scheme administrators if they are wearing several hats, including trustee and SSAS member, particularly if HMRC levied tax charges on the trustees in the event of holding a non-allowable investment.

If we fast forward to 2017, the then TPR executive Andrew Warwick-Thompson announced unfairly that SSASs had become the “vehicle of choice for criminals setting up a scam”, The view of the TPR was that SSASs were being used to enable pension liberation and there was a high scam risk associated with the unregulated solution.

Warwick-Thompson’s comments were misguided, but there remains a small minority of bad actors within the SSAS industry that take the opportunity to mislead and take advantage of the lack of regulation. It is these bad actors that we need to weed out to protect consumers and also the integrity of SSASs.

I propose the introduction of a requirement for a regulated SSAS operator, akin to the existing FCA framework for SIPP operators. The logical body to regulate SSASs would be The Pension Regulator (TPR). They already have an element of SSAS oversight as any new SSAS with more than a single member must be registered with them at the establishment.

How have SSASs survived the test of time?

Diligent SSAS providers will likely already be undertaking many of the responsibilities that you could reasonably expect TPR to require of a professional SSAS operator. But I would argue that the regulation would not need to be as stringent as it is for SIPPs, due to the structure of a SSAS and the involvement of a sponsoring employer.

Due to the nature of the SSAS, they need to be more flexible than their SIPP cousin as the trustees are likely to be business owners who are balancing the management of their company and pension. It’s important that we don’t lose the flexibility that SSASs offer.

I don’t think that SSASs get the recognition that they deserve in terms of providing a flexible solution for SMEs and business owners

Professional trustees have the expertise to negotiate the regulatory challenges and to flag risks such as potential liberation scams or high-risk investments. This expertise is invaluable and can be challenging for some self-appointed scheme administrators.

As far as I am aware, there isn’t any accurate data regarding the number of SSASs held, or the value of assets held within them. Unlike the regulated world of SIPP, there isn’t the database of information that can be called upon.

However, as a general observation, I don’t think that SSASs get the recognition that they deserve in terms of providing a flexible solution for SMEs and business owners.

Introducing effective and balanced regulation would help to unlock the full opportunity offered by SSASs, making the solution more mainstream and supporting the government’s growth agenda.

Caitlin Southall is head of SSAS proposition at WBR Group

The post Caitlin Southall: A call for SSAS regulation appeared first on Money Marketing.

Analyser is a fully independent platform and MPS comparison solution developed to provide advice firms with robust and repeatable due diligence and client reporting.

It helps ensure firms make the best decisions for customers and comply with the demands of the regulator.

Reports can be created at firm level for specific clients, groups or client families.

The update, unveiled today (3 February), will support advisers with the justification needed when recommending clients switch between platforms and then evidencing it.

It comes with templated justifications for why a certain platform is being recommended over an existing provider.

Advisers are then free to use these, adapt or override as needed.

Analyser has also introduced a ‘Provider Introduction’ feature, enabling advisers to refer themselves to providers that they would like to speak to, based on their research or shortlisting.

The data and contact are strictly between the adviser and provider, which means there is no data trading or cost involved for either party.

The Lang Cat said the upgrades follow the integration of Avenir, which is designed to support financial-advice firms with more efficient reporting.

The partnership combines Avenir’s platform with Analyser’s insights and analytics to automate data and streamline reporting, saving time and improving accuracy.

The Lang Cat digital director, Terry Huddart, said: “The sector continues to defy expectations with high inflows, with money moving around platforms a major factor.

“There’s a dearth of support for advisers working in this environment, which can be challenging, especially when the decision to move a client between platforms is more nuanced and not solely based on cost.

“Our new solution is designed to integrate with ongoing strategic panel selection and support advisers with a compliant, fully audited and time-saving methodology.”

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Brooks Macdonald acquired LIFT-Financial Group in October 2024 and the deal has now been completed.

The acquisition brings an additional £1.6bn assets of under advice (AUA) and 1,350 clients.

Brooks Macdonald’s financial-planning business now has total AUA of £6.4bn, of which £2.4bn is funds under management (FUM).

It also now boasts 90 advisers and paraplanners.

Brooks Macdonald chief executive officer Andrea Montague said: “I’m delighted that we have completed the acquisition of LIFT and that Michael Holden, one of the two founders, has taken the newly created role of chief executive of financial planning.

“Mike’s strong client and high-performance focus will further drive our strategy to reignite growth.”

Holden added: “Looking ahead, I’m excited to lead the financial-planning business. Building a solid, chartered business and investing in the next generation through initiatives like the Adviser Academy has always been a passion of mine.

“With Brooks Macdonald, I’m eager to build on this foundation and help drive the financial-planning business forward.”

LIFT was founded by Holden and Joel Adams, who both said they feel confident the acquisition is the “right step for the future of the business, its clients and its team”.

They both added they feel Brooks Macdonald shares LIFT’s values and “commitment to excellence”.

In December 2024, Brooks Macdonald also completed the acquisition of Norwich-based firm Lucas Fettes Financial Planning.

Lucas Fettes added £890m assets under advice, spread across 1,600 personal clients, plus £300m assets under influence from 300 corporate and employee benefits clients.

Lucas Fettes was integrated into Brooks Macdonald’s Direct Wealth business and will enhance the Group’s financial-planning capability.

In 1996, Lucas Fettes was one of the first IFAs to outsource part of their investment management to Brooks Macdonald and the relationship has continued ever since.

The post Brooks Macdonald makes LIFT co-founder CEO of financial planning appeared first on Money Marketing.

How do we protect and unlock advisers’ capacity, whether in terms of time, energy or capital?

This isn’t a challenge that’s unique to advice. But if we fail to address it, there are ramifications that stretch far beyond the sector’s borders.

Here’s what we need to focus on.

As it stands, advisers are balancing and facing conflicting factors.

One is growing demand. The sector has seen steadily expanding client lists, up from 2.4 million in 2017 to more than 3.5 million in 2023, according to the Financial Conduct Authority’s latest retail mediation activities return (RMAR) data. And appetite for advice is expected to keep rising – something that will take up advisers’ capacity, whether time, skill or capital, to meet.

Part of this stems from behavioural changes in the decade since pension freedoms. Clients are generally opting for drawdown, rather annuities as was the case pre pension freedoms. With various financial crises over the last few years covering Covid and the cost-of-living crisis, more consumers are realising this is complex and recognise they need help.

This ongoing trend will be compounded by an ageing population that’s living longer than ever before. The average life expectancy at birth for a woman born in England between 2021-2023 is now 83, nearly five years more than it was in 1980.

More contact time, from more people, with advisers is always a good thing, as are stronger client books

Political and regulatory ambitions are also spurring demand – from a drive for national economic growth to a focus on consumer financial wellbeing.

Achieving these will require the expertise of the advice sector, whether that’s increasing participation in retail investments or helping more people plan ahead for the costs of care in later life.

The latest change to introduce IHT on pensions may lead to previously confident DIYers seeking advice as IHT is a whole different level of complexity.

Let’s be clear: more contact time, from more people, with advisers is always a good thing, as are stronger client books. The issue comes when advisers’ ability to meet this increasing demand is constrained by persistent headwinds.

Firms continue to shoulder intense cost pressures; pressures that restrict investment in new headcount, premises and systems. This could be exacerbated even further by the planned increases to National Insurance in April, pushing up their costs.

On top of this, the ever-increasing regulatory burden can eat into any remaining spare time and capital advisers have.

And the actual number of advisers has remained relatively static. In 2017 there were just over 26,300, rising to just over 27,900 in 2023. That means that the ratio of advisers to ongoing clients has soared from 1:92, to 1:127 over the same period.

The outcome of this all? Firms become stuck squarely between a rock and a hard place.

We need greater engagement from the government on savings and investment policy development

As long as these circumstances persist, there’s a real risk that the sector will miss out on opportunities it has to fully meet demand for its services – to narrow that oft-referenced ‘advice gap’.

For adviser firms, that means potentially missing out on opportunities to grow as businesses.

There are some things that can be done to help.

The first is that we need greater engagement from the government on savings and investment policy development, so that the sector can, in turn, support and encourage proper long-term planning.

As I wrote in my column at the end of last year, chop and change creates disruption, and disruption saps resource.

A simple way to improve conditions is for policymakers to draw on the extensive experience of the sector to shape ideas that will work for both advisers and their clients. Where change is necessary, it’s also important to ensure appropriate transitional arrangements are in place.

Another aid will be to streamline regulation. This will involve ensuring that advice is as cost-effective as possible to deliver, and that value is maximised for the client, all while the right safeguards continue to be in place.

The value of advice is recognised. Nine in ten (91%) consumers who have paid for advice found it helpful, according to the lang cat’s Advice Gap 2024 report, which we supported.

But firms may simply not be able to serve as many people seeking help, if regulation means it’s not fundamentally cost efficient to do so. This is something that’s already been reported as happening in the context of Consumer Duty.

Technology improvements, and greater integration will continue to be key

While the regulator’s intended direction in its ongoing advice-guidance boundary review could really support the delivery of more cost-effective services to a wider range of people, this is focussed currently more on improving guidance.

We support this as a valuable first step but to free up capacity in advice businesses we do need further thinking on a practical solution to simplified advice too

But alongside this, it will also be incumbent on the sector’s partners to do what they can to be advocates for advisers’ capacity, and agents of change.

Here, a focus needs to be on identifying what we can do, collectively, to drive efficiencies for the adviser firms they serve – making sure our products and services help them do more, with less.

Technology improvements, and greater integration will continue to be key. As the Advice Gap 2024 report also highlighted, a ‘nirvana state’ of tech efficiency could lead to capacity per adviser rising by between 40% to 50%.

At abrdn, we continue to invest in our platform with boosting adviser efficiency in mind – from new tools such as our recently-launched ESG Hub on Wrap, to our fully-integrated cash solutions.

And we must keep sharing our combined expertise and experience with everything from support with training to technical insights. This can make a real difference to the time, energy and resources advisers have to dedicate to the market.

There will always be changes in demand and resource. The trick is ensuring that there’s sustainable capacity that facilitates growth. It’s a long-term mission, but one we’re certainly committed to supporting.

Noel Butwell is chief executive of Abrdn Adviser

The post Noel Butwell: Making space for doing more appeared first on Money Marketing.

Welcome to the first MM Talks episode of 2025! Join Kimberley Dondo, Lois Vallely and Dan Cooper as they dive into the financial trends and surprises shaping the new year – from the most defining moments for advisers to the curveballs of 2024 and how they’ll impact the year ahead. Plus, the news stories advisers can’t afford to miss!

The post MM Talks: 2025 financial trends, challenges and adviser insights appeared first on Money Marketing.

Paul Foody has joined as chief operating officer, while long-standing senior team member Paula Bertram-Lax takes on the role of chief customer & people officer.

Foody, who brings extensive experience in protection distribution and a proven track record in leveraging technology, will be responsible for consolidating and strengthening the LifeSearch proposition.

His expertise in underserved markets, including in the rental sector and working with younger demographics, offers on-the-ground experience to drive LifeSearch’s ambitions to diversify and grow within its target markets.

Commenting on his appointment, Foody said: “LifeSearch is a key player in the UK protection sector and has built an enviable reputation over the years as a disruptive force for good. LifeSearch has all the key ingredients in place – digital solutions, great people and real passion. My aim is to bring these elements together to ensure LifeSearch leads the market today, into 2025 and beyond.”

Meanwhile, Bertram-Lax’s remit has been adapted to focus on customer outcomes and experience. Since joining over 10 years ago, she has been responsible both for customer experience and revenue performance for the business.

This year, her role is transitioning towards further improving customer outcomes through insurer relationships and product governance, and overseeing a purpose-led LifeSearch employee culture.

Bertram-Lax said: “Customer centricity is a core tenet of everything we do here at LifeSearch, so I will now closely review our customer experience to ensure we serve our customers brilliantly, from first click to claim. With the FCA continuing their work on the Consumer Duty, we are determined to be a shining example in the industry of a business that is delivering superior customer outcomes.”

Debbie Kennedy, CEO at LifeSearch added: “Paul and Paula bring a powerhouse of knowledge and energy to our leadership team as we ensure LifeSearch continues to innovate, extend access to more people and set new standards.”

The post LifeSearch makes two new senior appointments appeared first on Money Marketing.

Perhaps, after a period where rate cuts in the major markets resulted in increases in 10-year government bond yields, other policies and powers will be used more.

The content and impact of those Executive Orders will be intriguing to see, especially when markets have been consistently wrong on the interest-rate policy. And, after a year of elections, in which 85% saw a change in command, the influence on global markets of politics in general – fiscal policy, regulatory change, weather and others – is worth pondering.

We believe it is likely that a number of these aspects can be expected to surpass the impact of traditional monetary policy tools such as interest rates in 2025 and beyond.

Post-pandemic fiscal stimulus and debt levels

The COVID-19 pandemic has left lasting scars on the global economy, with governments around the world amassing unprecedented levels of debt to finance stimulus packages and public-health responses. In 2025, many countries will face a delicate balancing act between managing public debt and stimulating growth.

Many countries will face a delicate balancing act between managing public debt and stimulating growth

In response, governments will likely implement more targeted fiscal policies, such as infrastructure spending or targeted subsidies, to spur economic recovery.

As these fiscal policies play out, their effect on global markets will likely be far more significant to market participants than changes in short-term interest rates.

We have been adding to US 10-year bonds to take advantage of the recent moves upwards but may have to wait for the capital return from falling rates, enjoying the income for now.

Government spending on infrastructure and green transition

Governments are likely to stimulate economies by spending on what they hope will be productive projects, such as infrastructure, technology and the green energy transition.

During 2025, fiscal policy will drive much of this investment, particularly through subsidies, tax incentives and government-led public-private partnerships. As a result, we see a more positive environment for best-in-class investment companies focused on these types of assets.

Political pressures and the shift towards protectionism

In the years leading up to 2025, political pressures from populism, nationalism and social inequality have driven changes in governments at elections at an unprecedented level.

Tariffs, subsidies and domestic procurement mandates will have a far-reaching influence on global supply chains

This has led to a more protectionist world. Fiscal policies such as tariffs, subsidies and domestic procurement mandates will have a far-reaching influence on global supply chains, trade relationships and corporate profitability. There is also the chance of a profound change in flows of currencies.

As a result, we will be watching the dollar closely.

Monetary policy’s limited effectiveness

In the aftermath of the global financial crisis and the pandemic, central banks have aggressively used monetary tools such as interest-rate cuts and quantitative easing to stimulate economic activity.

However, in 2025, these tools may be less effective, and there is an argument over what the aftermath of these policies looks like, with such high debt levels in western governments and beyond.

Nimble strategic bond fund managers could do well by picking their way through any volatility caused by the transition to this view.

Inflationary pressures and fiscal policy responses

In 2025, inflationary pressures will remain a key concern, especially in light of supply chain disruptions, geopolitical tensions, and rising energy prices.

While central banks will continue to manage inflation through interest-rate policy, fiscal policy may become the primary tool to address inflation’s root causes.

Looking to the future

As we enter 2025, the world’s financial markets will be increasingly shaped by fiscal policy rather than the actions of central banks. With rising debt levels, global infrastructure investments, political pressures for protectionism and welfare spending, government response options are decreasing.

In this environment, fiscal interventions are poised to play a more dominant role in determining global market trends. We believe a well-diversified, multi-manager portfolio is best placed to navigate this changing investment landscape for this year and beyond.

Rob Burdett is head of multi-manager at Nedgroup Investments

The post Rob Burdett: Why there’s more to world markets than interest rates appeared first on Money Marketing.

Good morning and welcome to your Morning Briefing for Monday 3 February 2025. To get this in your inbox every morning click here.

Supplementary report on the FCA’s ‘poor performance’ released

A supplementary report about the Financial Conduct Authority’s (FCA’s) “poor performance” in relation to its consumer protection remit has been released by the All-Party Parliamentary Group (APPG) on Investment Fraud and Fairer Financial Services.

The new report is being produced due to the APPG’s “disappointment” with how the FCA responded to its November 2024 report.

HMRC’s mid-year tax-regime changes will impact all of us

Life is getting tougher for tax payers trading assets and, in the short term at least, things are about to get worse when it comes to reporting, writes FSL managing director Michael Edwards.

HMRC has said it’s too late to adjust the format of the 2024/25 tax return to accommodate the changes made to capital gains tax rates in the 2024 Autumn Budget. This means investors will have to take extra steps to accurately report gains made on assets on or after 30 October 2024.

HMRC suspects wealthy individuals underpaid £325m in IHT in 2024

His Majesty’s Revenue and Customs (HMRC) has said it believes £325m in inheritance tax (IHT) has been underpaid by wealthy taxpayers in the last year (year-end March 31).

UHY Hacker Young, the national accountancy group has outlined that this figure could increase “significantly” in future years following IHT increases from April 2026.

Quote Of The Day

The FTSE 100 has been stopped in its tracks with the record run upwards going into reverse. It fell sharply in early trade amid worries that listed multinationals could be caught in the cross-fires of the trade wars

– Hargreaves Lansdown head of money and markets Susannah Streeter on the FTSE 100’s reaction to US president Trump’s tariffs on Canada, Mexico and China

In Other News

Capital Group has announced the launch of the Capital Group UK – Global Corporate Bond Fund (GCB), an Open-Ended Investment Company (OEIC) for UK investors.

GCB OEIC mirrors the investment approach and management team of its Luxembourg-domiciled UCITS counterpart, Capital Group Global Corporate Bond Fund (LUX), which has outpaced its reference index over the past five years.

Capital Group said: “GCB invests primarily in investment-grade (IG) bonds globally and is focused on providing a high level of total return over the long term.

“This approach offers UK investors market diversification and potential long-term stability through high-quality credit exposure.

“Managed by a lead portfolio manager and a team of 16 sector analysts, GCB’s portfolio is driven by fundamental research and high-conviction investments.”

Dollar surges as Donald Trump’s tariffs shake markets (Financial Times)

DeepSeek gives Europe’s tech firms a chance to catch up in global AI race (Reuters)

BoE to deliver setback for Reeves with ‘stagflation’ forecasts (Bloomberg)

Did You See?

The Financial Conduct Authority (FCA) has set out proposals to make it easier for listed companies to issue corporate bonds that wealth managers and retail investors can buy.

The city watchdog is also proposing to simplify the requirements that apply to listed companies when they issue further shares. By doing so, the FCA is attempting to streamline the process by cutting “red tape”.

The FCA is consulting on a single standard for corporate-bond prospectuses, covering both large and small (less than £100,000) bond sizes.

This in turn would reduce costs and barriers for companies raising capital and give “investors the information they need to make an informed decision”.

The aim behind these moves is to encourage companies listed on stock exchanges to offer bonds in smaller sizes, improving investment opportunities for wealth managers and retail investors.

Darius McQuaid has the full story.

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The new report is being produced due to the APPG’s “disappointment” with how the FCA responded to its November 2024 report.

That report was based on widespread criticism of the regulator from a range of independent sources, including external reports on the poor handling of the London Capital & Finance, Connaught, Interest Rate Hedging Product and British Steel Pension Scheme scandals.

Additionally, it included the testimony of many stakeholders who had interacted with the FCA, including scam victims and FCA employees, past and present.

APPG CBE MP, co-chairperson Bob Blackman said: “The Purpose Statement of our APPG is to advocate for the victims of financial misconduct, crimes, scandals, frauds and regulatory failures, by driving positive, progressive and purposeful reforms that achieve a fair, trusted and just system…where the service providers, regulators and government agencies provide appropriate protection and deliver good outcomes, including redress for historical wrongs.

“As such, the conduct and performance of the FCA is of great interest to us. When we were working on the original report we had no intention of producing a supplementary report shortly after, but doing so has proven necessary because of the unconstructive way the FCA has responded to our original report.

“When I delivered my speech in Parliament to launch our November 2024 report, I mentioned a nagging concern I had, that despite the best endeavours of the APPG to produce a report the FCA would take seriously and engage with positively, there was always the chance the regulator might respond in a disappointing, dismissive and defensive way.

“If so, that would point once again to it being in a continued state of denial – seemingly unable to absorb evidence-based criticisms being made of it.”

The reasons for disappointment with the FCA’s response to the original report are:

• The FCA has not responded at all to requests to meet with them to discuss the report and the issues it raised.
• The FCA has failed to meaningfully challenge any of the many claims and allegations made about it in the report by the 174 people who stepped forward to give their testimony.
• The FCA’s response to the widespread media coverage about our original report was that the report dealt with historic issues that had already been remedied through its Transformation Programme.
• Through disclosures achieved through a Freedom of Information Request, it has been discovered that the FCA is claiming that ‘85% of FCA stakeholders agree the FCA achieves its objective of protecting consumers’, but we have been unable to find anything to back this up.

The Supplementary Report will be issued in instalments. Instalment #1 sets the scene and each subsequent instalment will be a study of how the FCA has handled a particular recent scandal where it is felt there has been regulatory failure, with an emphasis on what the FCA’s decisions and actions have been.

Also, the case studies will be focused on recent scandals such as Woodford, Wealthtek, Philips Trust Corporation and Car Finance, so the FCA “will not be able to hide behind the claim that the issues raised are historic”.

APPG Vice Chair Lord Davies of Brixton added: “It’s critically important that the UK has a financial regulatory framework that upholds market integrity and gives consumers good reason to place their trust and confidence in it.

“But all the time the FCA proceeds from one scandal to another the adverse publicity that inevitably follows undermines trust and confidence, and thereby the prospects for economic growth. Our APPG is merely stating that the evidence shows the FCA has problems that need addressing. The red flag we are continuing to wave vociferously should not be ignored; and we’ll keep waving it until it isn’t.”

However, a spokesperson for the FCA in response to this latest report said: “The Board discussed the report in December. As the Government acknowledged in its response, we have made significant changes since the events featured in the original report took place and we do not recognise the characterisation of the FCA in the report.  Where there are further lessons to learn, we will take this forward as part of our ongoing work to continuously improve.

“Parliament and Government have numerous mechanisms to hold us to account on our effectiveness. This includes scrutiny by parliamentary committees and, since the original report, we have given evidence twice and the report was not raised with us by either committee.

“Our chair has offered to meet with the APPG’s leadership to discuss our work.

“We recognise there are a range of views in Parliament about our objectives.  We continue to protect consumers while embracing the new secondary growth and competitiveness objective given to us by Parliament. As we set out in our recent letter to the Prime Minister, we welcome a debate and as broad a consensus as possible about the appropriate risk appetite we should work to.”

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