Conservative City Minister Bim Afolami told representatives of a finance lobby group last week that Sunak and Hunt are “all over it … and they are fuming” — POLITICO has seen the minutes of that meeting.
The meeting notes also reveal that Afolami told City representatives to write to the chancellor asking him to intervene, which the bosses of 15 financial services trade bodies did on Friday afternoon.
They warned the “name and shame” plan “would have a negative impact on their valuation, could put at risk the wellbeing of individuals, and had the potential to destabilize financial markets.”
When asked about Afolami’s comments, a government spokesperson told POLITICO: “The approach to enforcement investigations is a matter for the FCA. However, we are of course engaging with both the FCA and the industry as the proposals are developed. This is, in particular, to ensure that any impacts on competitiveness are properly considered.”
An FCA spokesperson said it was “actively engaging” with government and industry and “welcome[d] all feedback” on its consultation on the plans, which closes Tuesday.
Unfairly tarnished
The FCA is feeling the heat over its proposals since it announced them in February. Peers in the House of Lords warned individuals would have their reputations “unfairly tarnished.”