Leader of the True and Fair Party Gina Miller has declared outgoing chair of the Financial Conduct Authority Charles Randell to be "unfit for public office", as a result of his involvement in the London Capital and Finance scandal.
In a statement responding to the Complaints Commissioner's final report to complainants in respect of the FCA's oversight of LCF and proposed changes to the FCA Compensation Scheme, Miller (pictured) argued that given Randell's role in the "sorry affair", he "should not be considered fit for any public office in the future".
The report from complaints commissioner Amerdeep Somal found that the approach taken by the FCA in regards to compensation in the LCF case was "unjustified" and fails to "stand up to scrutiny".
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In the 237-page report, Somal confirmed that the financial watchdog's attempt to introduce a "sole or primary cause test" frustrates clause 87 (5) of the Financial Services Act 2021, does not provide adequate consistency, and was inadequately reasoned.
The introduction of the amendment should also have been subject to consultation, she said.
Miller first criticised the FCA over amendments it made to its compensation scheme over a year ago, branding the move "unlawful".
Under updated rules, the FCA's complaints scheme states compensation will be paid only in circumstances in which an individual has "suffered a quantifiable financial loss caused solely or primarily by the actions or inaction of the FCA" and that payment will not "typically" cover the full loss.
In response to Somal's report, Miller said: "This report leaves the FCA in a difficult position: their diversion tactics are now laid bare for all to see, and I cannot see how they can justify the Remedies Statement now."
"It is a damming indictment of the entire FCA board that it sought to reduce the rights of the public to seek compensation from the FCA for regulatory failure in such an underhand manner.
"This report should be the final straw that leads to the Treasury stepping in and ordering a proper Kingman style independent review of the FCA."
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Co-founder of the True & Fair Campaign Alan Miller added: "It is imperative that the FCA does not make up the law as it goes along, or who prioritise the best interests of the FCA over that of the general public."
In December, Nikhil Rathi, chief executive of the FCA, said there was still "learning" to do regarding its application authorisation, following the LCF scandal, and acknowledged that allowing a firm that does not meet certain standards into the market can lead to problems further down the line.
The FCA has not responded for a request for comment.
