Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of establishing a judge-led inquiry on the Financial Conduct Authority's handling of Blackmore Bonds plc.

The Government considers it is important that there are appropriate mechanisms in place to ensure the financial services regulators are accountable for all aspects of their performance.

The Financial Conduct Authority (FCA) is responsible for ensuring consumer protection for a broad range of financial services products and HM Treasury works closely with the FCA to maintain a strong and safe financial system. However, the FCA does not have power to investigate a firm that is unauthorised and not carrying out any regulated activities.

Blackmore Bond Plc was not authorised by the FCA and the sale of the ‘mini-bond’ product it offered was not an activity regulated by the FCA. The Government therefore has no plans to establish a judge-led inquiry into the FCA’s handling of the collapse of Blackmore Bond plc.