MEPs call for action on Lloyd's scandal
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
MEPs are set to launch a legal action over the UK Government's failure to properly regulate the Lloyd's of London insurance market.
MEPs are set to launch a legal action over the UK Government's failure to properly regulate the Lloyd's of London insurance market.
An investigation by the European Commission found that the market lacked financial controls, failed to tell the Government about important financial problems, and pressured accountants to give it a clean bill of health.
The abuses took place over a 20-year period, in which time investors at Lloyd's - known as Names - lost more than £8bn. The Government's failure to stop this scandal breached European directives, the commission's investigation concluded.
However, because the Treasury had acted to bring in the City's financial watchdog, the Financial Services Authority, to regulate Lloyd's, the commission took no action against the Government.
This decision has angered MEPs, who are preparing to take the commission to the European Court of Justice over its decision not to act.
A meeting of the European Parliament's legal affairs committee takes place this week when the issue is expected to be raised. If the committee votes in favour of action, the Parliament's president, Josep Borrell, is obliged to take the case to court.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments