By Sohaib Shams
The Financial Conduct Authority (FCA) has said it stands ready to take action over a potential leak of market-sensitive information that appeared to boost bank share prices before last week's Budget.
The regulator will engage with the Treasury and Cabinet Office following concerns raised by Treasury Committee chairwoman Dame Meg Hillier. She wrote to the FCA referencing a Bloomberg report that published accurate details of planned changes to bank taxes before Chancellor John Healey's October 28 statement.
The Bloomberg article, published on the morning of the Budget, indicated the planned increase in the bank corporation tax surcharge would not return to the previous 8% level, making it less severe than expected. Dame Meg said this appeared to be more than idle speculation and had implications for relevant securities.
In a response published Tuesday, FCA chief executive Nikhil Rathi said the Treasury and Cabinet Office were best placed to determine whether any unlawful disclosure of inside information occurred. He said the FCA would consider any evidence to decide if action was warranted under market abuse rules, adding that parliamentary scrutiny was a better way to hold the government accountable for political discourse.
