Banking Misconduct and the FCA — House of Commons, 2018-05-10
Topic: Domestic Commerce
Norman Peter Lamb (Liberal Democrats, Centre to centre-left): It is a pleasure to follow the hon. Member for Dumfries and Galloway (Mr Jack) and I agree with every word he said. I congratulate the hon. Member for East Lothian (Martin Whitfield) on securing the debate and I thank the Backbench Business Committee for granting it The case for both an independent tribunal and a full public inquiry is overwhelming: the destruction of businesses, the destruction of lives, the ruin it has caused for families and the appalling treatment of whistleblowers. Brave people chose to speak out, risking everything. My constituent Mark Wright has seen his career and his health destroyed. He is a brave man still left waiting. What I would say to the Minister is this: this issue unites the House. There is complete agreement on both sides of the House on the need for something to happen. We have been debating this matter for quite some time and I do not really feel any sense of progress being made. I am afraid to say that I have lost confidence in the FCA’s ability to get to the bottom of the extreme wrongdoing that we have witnessed across our banking sector. This issue causes so much anger among people across our country. There is a sense that the elite got away with it without any consequences. I therefore say to the Minister: take seriously the sentiment on both sides of the House and call a public inquiry without further delay I want to raise an additional issue, which has the potential for further scandal: the risk that victims of the shareholder action against RBS and victims of GRG could face further loss as a result of the behaviour claims management companies and the failure of regulation and the policing of those regulations by the Ministry of Justice. The regulations were brought in by the Compensation Act 2006. Any claims management company that operates as a business needs to be regulated, yet the claims management company that worked on the shareholders’ action has never been regulated at all. This has been brought into sharp focus because of the action in that case. There has been a settlement of £200 million, but victims are still waiting for most of the money to be distributed. There are concerns about a £20 million bill from a firm called Evaluesafety linked to a certain Gerard Walsh, who has been involved from the very start. He has a track record of personal and business insolvency and has faced allegations of fraud, yet when concerns are raised with the MOJ it seems satisfied by assurances given by a lawyer associated with Gerard Walsh that everything is fine and that regulation is not relevant in this case. However, lawyers have advised the action group company that it comes within the regulatory remit and yet the MOJ does nothing I am really concerned about a double jeopardy here: people who have already lost through the appalling behaviour of RBS are now at risk of losing again with the settlement money leaking out all over the place, potentially improperly, and the victims left still waiting. The Ministry of Justice is doing nothing to get to grips with this. These are Government regulations passed through this House. The MOJ—I urge the Minister to have words with his ministerial colleagues—needs to get a grip. There are criminal sanctions where there is a failure to properly register in the regulation system. These people, if they are taking money out of the settlement pot away from innocent victims, need to be pursued. I do not know what the solution is and I do not know the full facts of the case, but I absolutely know that it needs to be investigated as a matter of urgency This is a long-running scandal. So many people have lost out so badly that we will only restore confidence in the banking system and in the system of regulation if we have a full public inquiry. The Government need to order it now.