Financial Conduct Authority (FCA) chief Nikhil Rathi will face grilling from MPs this week as pressure mounts over the regulator’s plans to “name and shame” companies it is investigating .
Rathi will be questioned tomorrow at the House of Commons Treasury select committee over the proposals, which have sparked a fierce reaction from the City.
The dispute centers on the FCA’s plans, which would mean it is more likely to name the companies it is investigating.
Currently it only does so in exceptional circumstances. But under the proposals, it would be open to carrying out investigations if it is considered to be in the public interest.
The plans have angered the city, while Jeremy Hunt has said he hopes the watchdog will review its decision, leaving Rathi increasingly isolated.
FCA boss Nikhil Rathi will be questioned at the Commons Treasury select committee tomorrow over the proposals, which have sparked a fierce reaction from the City.
Opponents say the proposal will damage the UK’s competitiveness at a time when London is struggling to maintain its status as a financial centre.
A coalition of financial sector lobby groups wrote to Hunt last week attacking the plans.
The battle will take center stage when Rathi, along with FCA president Ashley Alder, appears before MPs.
They will likely be asked to respond to the criticism and whether their plans will be affected by the backlash.
A Lords committee will also summon Rathi at a later date. Peers on that committee are already furious with the FCA, which they say has so far failed to address the concerns they have raised.
However, Rathi has the backing of a senior public figure: former Treasury select committee chairman Lord Tyrie, who says that if it appears consumers are being defrauded “then disclosure is probably in the public interest”.
The pair will also be questioned at the select committee hearing about the FCA’s wider work.
This includes an investigation into car finance which could cost the industry up to £16bn, drawing comparisons to the mis-selling of payment protection insurance (PPI) which cost lenders £50 billion.
The FCA is investigating whether customers were overcharged for car finance deals between 2007 and 2021.