Call for probe into business banking system

A YORKSHIRE MP is calling for a public inquiry into the “often incestuous” relationships between financial institutions and advisers.

Kevin Hollinrake, who is the co-chairman of the All Party Parliamentary Group on Fair Business Banking, believes a public inquiry is the only way to restore faith in the business banking system, which has been left reeling from allegations of misconduct

In a letter to Andrew Bailey, the chief executive of the Financial Conduct Authority, Mr Hollinrake, who is the MP for Thirsk, Malton & Filey, said: “Our entire economic model depends on fairness, transparency accountability and justice not only being done, but being seen to be done.

“As things stand this not the case.”

Although there had been several investigations into scandals and organisations, Mr Hollinrake said there had been as yet “no fullscale public inquiry into what, from our experience, is often savage treatment of businesses”.

Mr Hollinrake said he believed the inquiry must cut across institutional lines and investigate the complex and “often incestuous” relationships between financial institutions, their numerous advisers and related professions.

Mr Hollinrake wants the inquiry to analyse the regulatory system that is supposed to uphold standards and protect consumers.

He believes all the thresholds for holding an inquiry have been met.

A Financial Conduct Authority spokesperson said: “We have received the letter and will respond.” Full story: Business Page 1; Comment: Page 10.