Keir Starmer’s associates and a trade mission have issued an apology for breaching the House of Representatives’ code of conduct by contacting the Treasury to advocate for a cryptocurrency firm that employed him.
Ian McNicol, the former general secretary of the Labour Party, was found to have broken the rules in June 2023 for providing paid parliamentary services on behalf of Astra Protocol.
This incident was brought to the attention of the Standards Commissioner following an investigation by the Guardian into the business interests of House members.
Reports indicated that, while he was advising Astra Protocol, McNicol communicated with the Treasury, asserting that the company “has garnered a respected team of industrial veterans and well-known political advisors, along with significant experience in cryptography.”
In his late submission to the Treasury, Lord McNicol stated that the Astra Protocol team was “uniquely positioned to offer valuable insights into the challenges and opportunities related to regulating decentralized finance.” He cautioned that certain regulations could “stifle innovation.” His correspondence with the Treasury was later disclosed under the Freedom of Information Act.
At that time, McNicol was receiving monthly retainers from Astra Protocol. The firm has since introduced tokens that have drastically lost value—over 99%. He later served on Starmer’s front bench from fall 2023 to July 2024 and became a trade envoy to Jordan, Kuwait, and the occupied Palestinian territories in January.
Lord Margaret Obi noted in her findings:
“Though Lord McNicol claimed he was not compensated to make this submission to the HM Ministry of Finance, he was being paid a monthly retainer by Astra Protocol. Therefore, it seems reasonable to suggest that this retainer covered various tasks he performed at the time, including the submission to HM Ministry of Finance.”
The provision states that members “must not seek to gain from House members by accepting payments or other incentives for providing Congressional advice or services.”
The report indicated, “This letter addressed a question in the HM Treasury call for evidence but was also intended to promote Astra Protocol’s work.” McNicol referred to the company’s “unique product” in this letter.
The commissioner concluded it was not a significant violation since it was a one-off letter and didn’t leverage any special access gained by being a peer.
However, she remarked: “Nonetheless, this clearly illustrated the provision of Congressional services in return for compensation, and it raises questions as to why the letter was sent under Lord McNicol’s name instead of other senior personnel, like the CEO or chairman.”
In correspondence with the Lords’ Action Committee Chairman, Kakkar Lord, McNicol accepted the findings.
Following the Guardian’s report, two additional peers are now under investigation, although both deny any wrongdoing.
The complaint about McNicol was filed by Tom Brake, director of unlocked democracy and former deputy leader of the House.
While peers are allowed to take paid positions and must register them publicly, they are not required to disclose earnings unless working abroad, which is different from MPs.
