This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-23459932

The article has changed 13 times. There is an RSS feed of changes available.

Version 5 Version 6
Archbishop of Canterbury 'furious' over Church investment in Wonga Wonga row: Archbishop of Canterbury 'irritated' over Church funds
(35 minutes later)
The Archbishop of Canterbury is understood to be "furious" after the Church of England confirmed it invested indirectly in online lender Wonga. The Archbishop of Canterbury said he was "embarrassed" and "irritated" that the Church of England invested indirectly in online lender Wonga.
It comes after the Most Reverend Justin Welby told Wonga the Church would try to force it out of business by helping credit unions compete against the firm.It comes after the Most Reverend Justin Welby told Wonga the Church would try to force it out of business by helping credit unions compete against the firm.
But the Church later said it invested in funds that provided money for Wonga.But the Church later said it invested in funds that provided money for Wonga.
Archbishop Welby told the BBC he wanted the Church's investment rules to be reviewed following the row.
Lambeth Palace said an independent inquiry would be launched into how "this serious inconsistency" occurred.Lambeth Palace said an independent inquiry would be launched into how "this serious inconsistency" occurred.
The amount of Church money indirectly invested in Wonga was less than £100,000 out of investments totalling £5.2bn. The amount of Church money indirectly invested in Wonga was about £75,000 out of investments totalling £5.2bn, according to the archbishop.
Payday firms offer short-term loans, often at high interest rates, and have been accused of leading people into more debt.Payday firms offer short-term loans, often at high interest rates, and have been accused of leading people into more debt.
Last year, the Church placed such lenders on a list of unethical investments.Last year, the Church placed such lenders on a list of unethical investments.
This week, Archbishop Welby told Total Politics magazine he had met Wonga boss Errol Damelin and had "bluntly" told him "we're not in the business of trying to legislate you out of existence; we're trying to compete you out of existence".This week, Archbishop Welby told Total Politics magazine he had met Wonga boss Errol Damelin and had "bluntly" told him "we're not in the business of trying to legislate you out of existence; we're trying to compete you out of existence".
Mr Damelin, in response, said he was "all for better consumer choice".Mr Damelin, in response, said he was "all for better consumer choice".
But, after the archbishop's comments were widely reported, Financial Times journalists looked into the Church's own investments and discovered links with Wonga.But, after the archbishop's comments were widely reported, Financial Times journalists looked into the Church's own investments and discovered links with Wonga.
The paper reported that the Church's pension fund, which claims to explicitly ban firms involved in payday lending, had invested in US venture capitalists Accel Partners - a company that led Wonga fundraising in 2009.The paper reported that the Church's pension fund, which claims to explicitly ban firms involved in payday lending, had invested in US venture capitalists Accel Partners - a company that led Wonga fundraising in 2009.
According to BBC religious affairs correspondent Robert Pigott, the Church's investment is said to be removed from its immediate control by "several layers".According to BBC religious affairs correspondent Robert Pigott, the Church's investment is said to be removed from its immediate control by "several layers".
A Lambeth Palace spokesperson said in a statement the Church was grateful to the Financial Times for "pointing out this serious inconsistency of which we were unaware".A Lambeth Palace spokesperson said in a statement the Church was grateful to the Financial Times for "pointing out this serious inconsistency of which we were unaware".
The palace said the Church would be asking the Assets Committee of the Church Commissioners, a statutory body independent from the Church, "to investigate how this has occurred and to review the holding in this pooled investment vehicle".The palace said the Church would be asking the Assets Committee of the Church Commissioners, a statutory body independent from the Church, "to investigate how this has occurred and to review the holding in this pooled investment vehicle".
"We will also be requesting the Church Commissioners to investigate whether there are any other inconsistencies as normally all investment policies are reviewed by the [Church's] ethical investment advisory group.""We will also be requesting the Church Commissioners to investigate whether there are any other inconsistencies as normally all investment policies are reviewed by the [Church's] ethical investment advisory group."
Archbishop Welby, a former oil industry financial executive who sits on the Parliamentary Commission on Banking Standards, has previously lobbied for a cap on high interest rates charged by loan companies.Archbishop Welby, a former oil industry financial executive who sits on the Parliamentary Commission on Banking Standards, has previously lobbied for a cap on high interest rates charged by loan companies.
He told Total Politics the Church could do more to help non-profit lenders to compete with payday firms and said he had "a very good conversation" with Mr Damelin.He told Total Politics the Church could do more to help non-profit lenders to compete with payday firms and said he had "a very good conversation" with Mr Damelin.
He said of the Wonga head's response: "He's a businessman; he took that well."He said of the Wonga head's response: "He's a businessman; he took that well."
Mr Damelin later said: "There is mutual respect, some differing opinions and a meeting of minds on many big issues.Mr Damelin later said: "There is mutual respect, some differing opinions and a meeting of minds on many big issues.
"On the competition point, we always welcome fresh approaches that give people a fuller set of alternatives to solve their financial challenges. I'm all for better consumer choice.""On the competition point, we always welcome fresh approaches that give people a fuller set of alternatives to solve their financial challenges. I'm all for better consumer choice."
'Social good''Social good'
Earlier this month, Archbishop Welby launched a new credit union aimed at clergy and church staff. Credit unions charge their members low rates of interest to borrow money.Earlier this month, Archbishop Welby launched a new credit union aimed at clergy and church staff. Credit unions charge their members low rates of interest to borrow money.
The BBC's Robert Pigott said the archbishop's latest plan was to go to some of the 500 independent loan companies and say to them "we will help you by letting you have access to our buildings and expertise".The BBC's Robert Pigott said the archbishop's latest plan was to go to some of the 500 independent loan companies and say to them "we will help you by letting you have access to our buildings and expertise".
Our correspondent said the Church would not run the companies but would help them and allow them to work on its premises.Our correspondent said the Church would not run the companies but would help them and allow them to work on its premises.
He said news that the Church had invested in funds that provided money for Wonga was "embarrassing" for Archbishop Welby, but it had "raised the stakes even further" and meant the plan to compete with Wonga "has to succeed".He said news that the Church had invested in funds that provided money for Wonga was "embarrassing" for Archbishop Welby, but it had "raised the stakes even further" and meant the plan to compete with Wonga "has to succeed".
"I think the archbishop would see this as a social good countering a social evil," he added."I think the archbishop would see this as a social good countering a social evil," he added.
According to the Church's website, its "ethical investment restrictions" apply to companies involved in pornography, tobacco, gambling, alcohol, military products and services, high interest rate lending and human embryonic cloning.According to the Church's website, its "ethical investment restrictions" apply to companies involved in pornography, tobacco, gambling, alcohol, military products and services, high interest rate lending and human embryonic cloning.
This means the Church's Ethical Investment Advisory Group "recommends against investment" in companies which make more than 3% of their income from pornography, 10% from military products and services, or 25% from any of the other restricted industries.This means the Church's Ethical Investment Advisory Group "recommends against investment" in companies which make more than 3% of their income from pornography, 10% from military products and services, or 25% from any of the other restricted industries.
'Minimising harm''Minimising harm'
The Church says it "reserves the right" not to invest in companies with "unacceptable" management practices.The Church says it "reserves the right" not to invest in companies with "unacceptable" management practices.
But Jonathan Bartley, of religious think tank Ekklesia, said the Church's policy was to make the most of its investments while "minimising harm".But Jonathan Bartley, of religious think tank Ekklesia, said the Church's policy was to make the most of its investments while "minimising harm".
"A better way of doing it would perhaps be to see the investments as part of the Church's mission, rather than an add-on, and saying actually we'll try and do good with our money," he said."A better way of doing it would perhaps be to see the investments as part of the Church's mission, rather than an add-on, and saying actually we'll try and do good with our money," he said.
Meanwhile, Business Secretary Vince Cable has backed the archbishop's plan to force Wonga out of business.Meanwhile, Business Secretary Vince Cable has backed the archbishop's plan to force Wonga out of business.
Mr Cable told Channel 5 News that the archbishop was "right not just to condemn abuse but to offer alternatives which are more ethical".Mr Cable told Channel 5 News that the archbishop was "right not just to condemn abuse but to offer alternatives which are more ethical".
Mr Cable also said that the government was considering ways of regulating the industry, possibly by stopping advertising "drawing people into payday lending who perhaps shouldn't be using it."Mr Cable also said that the government was considering ways of regulating the industry, possibly by stopping advertising "drawing people into payday lending who perhaps shouldn't be using it."