The UK Financial Conduct Authority (FCA) has blamed the upcoming general election for delaying the publication of its review into treatment by financial services firms of domestic Politically Exposed Persons (PEPs) - even as recent days have seen a growing demand from multiple political parties for another regulator - the Gambling Commission - to publish names of PEPs suspected of breaking UK gambling law in betting on the date of the election.
The FCA said on Thursday 19 June that: "We had been on track to publish the findings from this review in line with the end of June deadline set in the Financial Services and Markets Act 2023."
"However, we do not think it is appropriate to publish the review during the pre-election period. We will now publish it in July once Parliament has returned."
Among the comments made when announcing the review, the FCA stated: "We have heard from domestic PEPs that firms may not be applying an effective and proportionate risk-based approach to them and their family or known close associates. Intelligence also indicates that some firms could be using standardised questionnaires, used automatically, for PEPs and their family members and known close associates that may not sufficiently recognise the expectations on lower risk for UK domestic PEPs. There is a concern that firms may be failing to properly implement our guidance. This matters as individuals may be excluded from products or services through no fault of their own."
Meanwhile, as reported by broadcasters BBC, ITV and Sky on 23 June, the Gambling Commission is understood to be widening its ongoing investigation into bets linked to the general election, made by those with insider information, and which would be against the law.
As noted on 21 June by University of Birmingham professor Kate Bedford, professor of Law and Political Economy "Under the 2005 Gambling Act (section 42) it is a criminal offence to cheat at gambling or do anything for the purpose of enabling or assisting another person to cheat at gambling. The maximum penalty is up to 2 years in prison."
"All betting companies licensed by the UK’s Gambling Commission (including remote betting intermediary licensees, or trading rooms), are required to report suspected offences (LCCP 15.1.2). Licensed operators are also required to carry out enhanced due diligence on the gambling of ‘politically exposed persons’ or family members or close associates of such persons – this would include individuals who work closely with such persons."
The Gambling Commission says that while its investigation into bets made on the date of the general election continues it will not publish names. However, the Labour Party, which currently leads the opinion polls, wrote to the regulator on 23 June stating that there is a public interest case for the Commission to publish the names of those it is investigating.