FSA attacked over Iceland
MPs HAVE accused the Financial Services Authority (FSA) of deliberately misleading a Select Committee over the failure of Icelandic banks.
The Communities and Local Government Committee, which is investigating why local authorities put over £1bn into Icelandic banks before they collapsed, criticised the regulator in a hard-hitting letter for being “unhelpful to the point of obfuscation.”
It also said the FSA was not fulfiling its duty as a regulator.
“We strongly suspect that the clear answer to our question of what steps the FSA has actually taken to regulate treasury advisers is ‘none’,” the group said.
The FSA responded: “We absolutely refute the charge of obfuscation.”
The City watchdog added: “We endeavoured to be helpful to the Committee by providing the information they requested.”