MP Nick Smith has said “scandals such as the British Steel Pension Scheme will not happen so easily again” due to tougher new laws.
The Blaenau Gwent MP said his suggested changes to the Financial Services and Markets Bill will help ensure that parliamentarians will have greater scrutiny of regulators.
Smith campaigned for an amendment that would require regulators such as the Financial Conduct Authority (FCA) to update MPs and Lords about their work more frequently.
The amendment stems from Smith’s campaigning on behalf of steelworkers ripped off in the 2017 BSPS scandal.
The bill is expected to receive Royal Assent in the near future and speaking to Money Marketing, Smith said: “I have been pressing the FCA to take harder enforcement action against these bad actors who missold steelworkers and will continue on steelworkers behalf to try and get the FCA to provide more justice for steelworkers who have been let down by the system. I am really pleased to get it [bill] through as it is an important first step in having improved oversight.”
The government has amended its bill to introduce new laws requiring statutory panels to produce annual reports, a similar amendment to one tabled by Smith in December 2022.
On Monday (26 June) Smith spoke in parliament about the legislation and said: “The FCA faced the City of London, not the homes of vulnerable steelworkers in Ebbw Vale, Port Talbot and Scunthorpe.
“As parliamentarians, we found it hard to influence the dilatory regulator in support of our steelworker constituents, who deserved much better protection against the financial sharks.”
The government has given some indication of how it might use its new powers.
Economic secretary and MP Andrew Griffiths said that the Treasury intended to use this power “in the first instance to direct the publication of annual reports by the CBA (Cost Benefit Analysis) panels and the FCA consumer panel. I hope the hon. Member for Blaenau Gwent will welcome this as he tabled a similar amendment.”
This week has seen a number of important developments on British Steel as the FCA banned two advisers Denis Lee Morgan and Mark Abley over advice failings.
The FCA has also completed around 30 investigations into British Steel advisers and firms.
