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PARLIAMENTARY WRITTEN QUESTION
Financial Services: Regulation (22 November 2017)

Question Asked

To ask Mr Chancellor of the Exchequer, whether he plans to change financial regulation in response to the ecohouse fraud; and if he will make a statement.

Asked by:
Sir Desmond Swayne (Conservative)

Answer

While HM Treasury sets the legislative framework for the regulation of financial services, the supervision and regulation of the financial services industry is a matter for the Financial Conduct Authority (FCA). The FCA is an independent, non-governmental body and HM Treasury cannot intervene in individual cases.

Investment in real estate is regulated by the FCA where it is undertaken as a consequence of having taken regulated financial advice, or by way of a regulated collective investment scheme. In 2014, the FCA prohibited the promotion of unregulated collective investment schemes, such as EcoHouse, and non-mainstream pooled investments to retail investors.

Fraud is a criminal offence and as such, is a matter for the police.


Answered by:
Steve Barclay (Conservative)
30 November 2017

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