{
  "id": 17990416,
  "title": "City watchdog ‘stands ready’ to act on bank windfall tax Budget leak",
  "url": "https://urgent.news/2026/11/03/city-watchdog-stands-ready-to-act-on-bank-windfall-tax-budget-leak",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-03T16:31:18.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/city-watchdog-stands-ready-to-act-on-bank-windfall-tax-budget-leak/"
  },
  "original_language": "en",
  "account": "Nikhil Rathi, the head of the Financial Conduct Authority (FCA), has expressed readiness to investigate a possible leak of market-sensitive information that affected bank shares before the release of Chancellor John Healey's Budget. In a letter to the Treasury Committee, Rathi vowed to work with Treasury and Cabinet Office officials to determine if \"any unlawful disclosure of inside information may have occurred.\"\n\nRathi stated that, while parliamentary scrutiny, including select committees and leak inquiries, is typically a preferred method for assessing political discourse and government communications, the FCA might \"choose to intervene where that discourse, or poor information handling, impacts markets improperly.\" He added that the watchdog is prepared to consider the specifics of any evidence provided to decide on the appropriate course of action.\n\nTreasury Committee Chair Meg Hillier raised concerns about whether the leak of the windfall tax's severity constituted an \"improper release of inside information.\" Shares in major high-street banks surged in the hours leading up to the Budget, following the revelation by Bloomberg News that the surcharge would be temporary and not as high as initially speculated. Lloyds and NatWest shares increased by up to four percent, while Barclays rose by 3.7 percent.\n\nHillier accused the FCA of receiving market-sensitive information ahead of the Budget, stating that the leak had implications for relevant securities. She urged the FCA to investigate the security processes surrounding fiscal events and determine if banks or their trade bodies were informed of the changes \"in outline or with specifics\" before the Budget. Hillier also requested information on the number of individuals who had prior access to the policy's final structure.",
  "summary": "The boss of the Financial Conduct Authority has said he is prepared to investigate a potential leak of market-sensitive information that sparked a rally in bank shares hours before John Healey’s maiden Budget. In a letter to the Treasury Committee, Nikhil Rathi vowed to engage with Treasury and Cabinet Office officials over how the details [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}