Tory peer takes swipe at FCA over brokers’ merger approval

Jun 30, 2023 at 3:37 PM
Tory peer takes swipe at FCA over brokers’ merger approval

A senior Tory peer has taken a swipe on the City watchdog over its timetable for approving the merger of two outstanding London stockbrokers.

Lord Leigh of Hurley, a key determine in Conservative fundraising circles and a veteran banker, accused the Financial Conduct Authority (FCA) of appearing as “a block on economic growth” throughout a House of Lords alternate on the Financial Services and Markets Bill, which gained Royal Assent this week.

Sources mentioned on Friday that Lord Leigh had been obliquely referring to the FCA’s strategy to clearing the mix of finnCap and Cenkos, which introduced plans to merge in March.

Lord Leigh of Hurley. Pic: UK Parliament
Image:
Lord Leigh of Hurley. Pic: UK Parliament

The peer is senior associate at Cavendish Corporate Finance, which was acquired by finnCap in 2018.

One market supply mentioned the tie-up with Cenkos was unlikely to realize formal approval for a number of extra months.

“There is huge frustration still at the FCA at the time taken to progress transactions and the time taken to execute transactions, being a significant block on economic growth, which is one of the objectives the FCA will now have,” Lord Leigh instructed friends on Thursday.

He requested for Treasury ministers to “ensure the FCA are aware of their new objectives and requirements and that this actually takes place in practice”.

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In the unique announcement in regards to the deal, the businesses mentioned: “Taking into account the FCA approval timetable, the scheme is currently expected to become effective during the third calendar quarter of 2023,” suggesting that date could but be achieved.

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The merger of finnCap and Cenkos was introduced a tough marketplace for mid-sized London broking corporations, with a dearth of public firm listings impacting their revenues.

The FCA has been contacted for remark.