The collapse of peer-to-peer lending platform Lendy has been highlighted as one of several reasons why a review should be held into Andrew Bailey’s appointment as Bank of England governor.
Transparency campaigner Gina Miller has issued a report setting out several failings of the Financial Conduct Authority (FCA) during Bailey’s tenure as chief executive.
The report said the FCA failed to “regulate properly Lendy which collapsed, costing 9,000 investors up to £90m.”
It also highlights failures to regulate the investment fund sector properly and a lack of response to whistleblowers relating to collapsed mini-bond provider London Capital & Finance.
Bailey has previously justified the FCA’s authorisation of Lendy despite concerns about the business, as he said it was a more effective way to protect investor money.
Miller, best known for her legal case against Brexit, is using her True and Fair Campaign organisation to call for chancellor Rishi Sunak to establish a review of the appointment and for Bailey to appear in front of the Treasury select committee to address the FCA’s failings.
“Bailey’s tenure as chief executive of the FCA has been characterised by a toxic cocktail of negligence, incompetence and indifference to the needs of ordinary depositors, investors and pensioners,” she said.
“On his watch, hundreds of thousands of Britons have lost money – in many cases, losing their life savings which has devastated their lives, families and businesses.
“Bailey is not a fit and proper person to be the next governor of the Bank of England.
“Were he to be confirmed in this highly responsible and prominent role, it would be a gross betrayal of the Government’s duty to protect consumers, and a textbook example of rewarding failure.”
She said Bailey’s successor at the FCA must satisfy policymakers and the public they are competent and committed to protecting consumers.
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