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Financial Conduct Authority Says It Stands Ready to Act on Budget Leak
Financial Conduct Authority says it stands ready to act on the Budget leak that moved bank shares
Key points
- Rathi wrote that he would engage Treasury and Cabinet Office officials over how details of the windfall tax on banks reached the press.
- Bloomberg News revealed the banks surcharge would be temporary and not as high as some had speculated, lifting high-street lender shares.
- Meg Hillier, chair of the Treasury Committee, asked whether the leak amounted to an improper release of inside information.
Why it matters. Rathi said the FCA may intervene where political discourse or poor information handling impacts markets improperly, a stance that could shape how markets react to Budget details.
FCA chief Nikhil Rathi said he is prepared to investigate a possible leak of market-sensitive information that lifted bank shares before John Healey's maiden Budget. In a letter to the Treasury Committee, he said the FCA would consider evidence from the Cabinet Office and HM Treasury before deciding what action, if any, to take. Committee chair Meg Hillier had asked whether the leak of the windfall tax's severity was an improper release of inside information.
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Financial Conduct Authority Says It Stands Ready to Act on Budget Leak
The head of the Financial Conduct Authority, the City watchdog, has said the regulator is prepared to investigate a potential leak of market-sensitive information. The alleged leak concerns a bank windfall tax that was announced or previewed ahead of the Budget. Market-sensitive information can move share prices if it is disclosed before an official announcement, which is why such leaks draw regulatory scrutiny. The FCA's chief has said it stands ready to act but has not, according to the report, confirmed that an investigation has begun. The next steps depend on the outcome of any review of how the information became public.