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Written question asked by Lord Sikka (Labour) on Wednesday, 17 March 2021, in the House of Lords. It was due for an answer on Wednesday, 31 March 2021. It was answered by Lord Agnew of Oulton (Conservative) on Wednesday, 24 March 2021 on behalf of the Treasury.

HBOS and Royal Bank of Scotland: Fraud

Question

To ask Her Majesty's Government whether any department has given directions to the Financial Conduct Authority in connection with its investigation of the alleged frauds identified in the 2013 'Project Lord Turnbull Report' at (1) Halifax Bank of Scotland, and (2) Royal Bank of Scotland.

Answer

As you are aware, the FCA is an independent non-governmental body responsible for regulating and supervising the financial services industry. Although the Treasury sets the legal framework for the regulation of financial services, it has strictly limited powers in relation to the FCA. In particular, the Treasury has no general power of direction over the FCA and cannot intervene in individual cases.

Given the matters raised are the responsibility of the FCA, in view of its independence, it is not for the Government to provide direction.

However, as you may be aware, in the case of HBOS, Dame Linda Dobbs has been appointed as an independent legal expert to consider whether issues in the HBOS Reading Fraud were investigated and appropriately reported to authorities at the time by Lloyds Banking Group. At present the Dobbs review is ongoing and once completed, its findings will be shared with the FCA.

On Royal Bank of Scotland and GRG, the FCA has concluded their final investigation, which reaffirms the outcome of its enforcement investigation, which was announced in July 2018.

Finally, there are currently no plans for the Government to establish an independent review of the conduct of the Financial Conduct Authority in relation to the RBS and Lloyds Banking Group.

Secondary information

Type
Written question
Reference
HL14344
Session
2019-21
Grouped for answer
Yes
Subjects
Fraud HBOS Royal Bank of Scotland Financial Conduct Authority
Link
View this Written question on www.parliament.uk