(LD):...The second issue
that I want to underscore was raised by my noble friend. It is
that, culturally, the FCA seems to be very timid about pushing to
the limit of the perimeter the regulatory powers it already has.
It is so because it is very afraid of stepping over the boundary
at any point. These amendments provide not only much more clarity
but some backbone for the FCA to take a far more positive stance.
It is quite shocking to most people that the key financial
regulator can be absolutely aware that abuse is taking place,
that mis-selling is taking place, but feels that it is unable to
do or say anything because there is a regulatory perimeter after
which the issue is caveat emptor and those who are defrauded can
turn only to the enforcement agencies, which relies on finding a
local police force that has the resources and capacity to pick up
the issue. We know that with the Lloyds Reading case small
businesses that were very badly abused went to police force after
police force and were turned down until they went to Thames
Valley Police, which had more resources, and the police and crime
commissioner, Anthony Stansfield, whom I utterly praise in this
issue, decided to take on the case—a very rare instance. They got
no help from the National Crime
Agency or the Serious Fraud Office because they
considered that the fraud that everyone recognised was taking
place was too small fry to occupy them. Frankly, it is a shocking
situation to be in. Many people have said that this must be
remedied. I congratulate my noble friend on bringing forward an
amendment that aptly provides that remedy. I very much hope that
the Government will take it up...
The Parliamentary Secretary HM Treasury () (Con):...As the noble
Baroness, Lady Bowles, explained, Amendment 38 targets
fraudsters; the Government strongly agree with the spirit of it.
However, strong punishments for those carrying out these acts
already exist under the Fraud Act; also, the police and
the National Crime
Agency already have the powers to investigate
fraud, with the FCA providing strong support. That is why we are
ensuring that the police have appropriate resources to apply the
existing powers to identify and bring the most harmful offenders
to justice, including through severe penalties for those who
target some of the most vulnerable in society. The Home Office is
investing £400 million in tackling economic crime over the
spending review period, including £100 million dedicated to
fraud...
For context, OPEN HERE
