Labour peer apologises for writing to Treasury to promote crypto firm he advised

A Labour adjacent and commercialized envoy for Keir Starmer has apologised for breaking the House of Lords codification of behaviour by penning to the Treasury to beforehand a cryptocurrency steadfast that was paying him.

Iain McNicol, a erstwhile wide caput of the Labour party, was recovered to person breached the rules by offering a paid parliamentary work connected behalf of Astra Protocol successful June 2023.

His actions were reported to the standards commissioner pursuing the Guardian’s months-long investigation into the House of Lords examining the commercialized interests of peers.

The reporting revealed that the Labour peer wrote to the Treasury portion helium was a paid advisor to Astra Protocol, saying the institution had assembled an “esteemed squad of manufacture veterans and high-profile governmental advisers, with extended acquisition successful crypto”.

In a precocious submission to a Treasury consultation, Lord McNicol wrote to officials that Astra Protocol’s squad was “uniquely placed to supply meaningful insights into the challenges and opportunities that travel with regulating DeFi [decentralised finance] and different crypto assets”. He cautioned successful the missive against allowing regularisation to “stifle innovation”. His email and missive to the Treasury were released nether state of accusation laws.

At the time, McNicol was paid a monthly retainer by Astra Protocol, which had launched a token that subsequently plunged successful worth by much than 99%. He aboriginal sat connected Starmer’s frontbencher, from autumn 2023 to July 2024, and was made a commercialized envoy to Jordan, Kuwait and the occupied Palestinian territories by the premier curate successful January this year.

The Lords commissioner, Margaret Obi, successful her findings wrote: “I see that by penning a missive to HM Treasury officials successful his ain sanction connected behalf of Astra Protocol, Lord McNicol provided a paid parliamentary work to Astra Protocol.

“Although Lord McNicol stated helium was not paid specifically for providing this submission to HM Treasury, helium was paid a monthly retainer by Astra Protocol. I truthful see that this retainer tin reasonably beryllium understood to screen the assorted tasks helium undertook for the institution astatine that time, including his submission to HM Treasury. I truthful find Lord McNicol breached paragraph 9(d) of the codification of conduct.”

This clause states members “must not question to nett from rank of the location by accepting oregon agreeing to judge outgo oregon different inducement oregon reward successful instrumentality for providing parliamentary proposal oregon services”.

The study said: “Although the missive responded to the questions posed successful HM Treasury’s telephone for evidence, it was besides utilized to beforehand the enactment of Astra Protocol. In the letter, Lord McNicol refers to Astra Protocol’s ‘unique offering’.”

The commissioner said she did not find it to beryllium a important breach, due to the fact that it was a azygous missive and did not marque usage of immoderate peculiar entree oregon contacts gained by being a peer.

But she added: “Nevertheless, this was a wide illustration of providing a parliamentary work successful instrumentality for payment. It is besides not wide wherefore the missive was sent specifically successful Lord McNicol’s name, alternatively of successful the sanction of elder subordinate of unit wrong the organisation, for illustration the CEO oregon chairman. I truthful see remedial enactment to beryllium due and suggest a missive of apology to the seat of the behaviour committee.”

In a missive to Lord Kakkar, seat of the Lords behaviour committee, afloat accepting the findings, McNicol said: “I would similar to connection my afloat and unreserved apology for breaching the code.”

Two different peers are nether probe – Lord Evans and Lord Dannatt – pursuing reporting by the Guardian. Both person denied wrongdoing.

The ailment astir McNicol was submitted to the commissioner by Tom Brake, the manager of Unlock Democracy and a erstwhile lawman person of the House of Commons, who had raised questions implicit whether McNicol’s attack to Treasury officials fell foul of Lords rules.

Peers are allowed to instrumentality connected paid roles and indispensable database them connected a nationalist register, but dissimilar MPs they bash not person to state however overmuch they gain unless moving for a overseas state.