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<p>The Financial Conduct Authority (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 it is solely responsible for everyday operational decisions without Government
approval or direction, and so it is primarily accountable for them. The Government
has no plans to support a cross-party parliamentary investigation into the FCA’s handling
of issues relating to Azure Services Limited, as this would be a matter for Parliament.
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 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, 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. Barclays Partner Finance
is currently putting in place the necessary arrangements for this programme of remediation
and has committed to contact impacted customers before the end of the year to set
out the next steps.</p>
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