Question to the HM Treasury:

To ask His Majesty's Government, further to the Written Answer by Baroness Vere of Norbiton on 5 February 2021 (HL1819), whether they will provide a reason why the Financial Conduct Authority has not launched an independent inquiry into banking fraud at HBOS and Lloyds Banking Group.

The Government regularly engages with a range of stakeholders across the financial services landscape, and it is important that communication can take place in a free and frank way.

The matter of HBOS Reading is first and foremost for the Financial Conduct Authority as the independent non-governmental body responsible for regulating and supervising the financial services industry, and is subject to an ongoing review being led by Dame Linda Dobbs DBE.

The most appropriate form of investigation is a matter for the Financial Conduct Authority to determine. However, the Government notes that the regulator has already undertaken an investigation into this matter, in addition to the Cranston Review and, latterly, the work of Sir David Foskett to ensure adequate compensation. The Financial Conduct Authority will receive a copy of the Dobbs Report in due course and will be able to consider whether any further action is appropriate.