The Treasury has ruled out launching its own independent inquiry into the collapse of Keydata until after the Financial Services Authority (FSA) has completed its review - which has so far stretched to two years without any public findings.
Ex-City minister Lord Myners, who raised the issue of a government inquiry with the Treasury, specifically asked if MPs will look into "the contribution, if any, of regulatory failures". But commercial secretary to the treasury Lord Sassoon replied that a government probe into the FSA's role in Keydata's collapse would not be "appropriate" before the regulator reports on its review. "The FSA is still investigating the issues surrounding Keydata Investment Services and the government feels it would not be appropriate to comment on this matter before this investigation is completed," he...
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