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<p>The Government recognises the impact on consumers as a result of Azure Services’
business practices whilst it operated as a credit broker without the relevant Office
of Fair Trading (OFT) licence and, later on, Financial Conduct Authority (FCA) authorisation.
However, the Government notes the decision by Barclays Partner Finance to refund over
£210m to customers who took out a loan following an introduction by Azure Services.</p><p>
</p><p>The FCA has been established as an independent regulator responsible for the
supervision and regulation of conduct in financial services. The FCA’s independence
from Government does not mean it can act arbitrarily, rather it must operate within
the framework of statutory duties and powers agreed by Parliament. As well as being
required to operate within this framework, the FCA is fully accountable to Parliament
for how it discharges its statutory functions.</p><p> </p><p>This direct accountability
to Parliament reflects the FCA’s statutory independence and the fact that they are
solely responsible for everyday operational decisions without Government approval
or direction, and so are primarily accountable for them. That notwithstanding, the
Treasury plays an important role in holding the FCA accountable, including through
engaging closely with the FCA across all levels of seniority.</p><p> </p><p>The FCA
is currently part way through its Transformation Programme, which is accelerating
an ongoing programme of reform to make the FCA a more innovative, assertive and adaptive
regulator. Amongst other things, the Transformation Programme aims to ensure that
the FCA can make fast and effective decisions, and prioritise the right outcomes for
consumers, markets and firms. It also involves significant investment in the FCA’s
systems and capabilities to enable better use of data and intelligence to regulate
50,000 firms effectively and efficiently.</p><p> </p><p>As part of its Transformation
Programme, the FCA has enhanced its approach to authorisations, including by applying
its standards more robustly.</p>
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