View more on these topics

FCA asked to review policy on bank fraud redress


The Complaints Commissioner has suggested the FCA review how it deals with complaints where banks do not refund account holders after fraudulent transactions.

But the adjudicator has backed the way the regulator handled enquiries from a couple who had been the victims of fraud.

A couple complained to their bank, the Financial Ombudsman Service and the FCA after criminals transferred £2,000 out of their account.

The bank refused to refund the money, and the FOS upheld this decision.

The couple argued to the FCA the bank had not upheld the regulator’s rules on unauthorised payments, and that the regulator had a general responsibility for the failure of banks to combat the kind of fraud they suffered.

In particular, the couple were frustrated that the FCA did not provide them with updates on how it was using the information it provided to them.

The regulator put this down to confidentiality restrictions that, by law, it has to abide by.

A Complaints Commissioner ruling released today finds that the FCA handled the complaint correctly and had given accurate advice about whether or not the bank should reimburse the couple.

However, the Complaints Commissioner said that the FCA should look at how it and banks respond to similar instances of fraud in future.

The decision reads: “You have been the victim of criminal activity, and you have faced considerable difficulty obtaining the information which you needed to report the matter to the police. However, that was not the fault of the FCA.

“There is a broader question which you raise about how the banks respond to fraud of this nature, and what they should do about “mule” accounts of the kind which appears to have been used in your case.

“I am suggesting that the FCA consider whether, in the light of your complaint (and any others of which they are aware) any adjustments to the current policy might be desirable.

“I suggest that the FCA and the banks look at this as a policy issue, if they are not already doing so, including whether any adjustments might be needed to the policy on unauthorised payments, but that goes beyond the scope of this complaints scheme.”


Royal Court of Justice High Court 480

FCA wins battle to ban convicted adviser

The FCA has succeeded in throwing out an adviser’s appeal against his ban. IFA Anthony Badaloo, a sole trader through Church Hill Finance, had permission to conduct both investment and home finance business. He also had interim permissions for consumer credit business. The dispute with the FCA centred around how Badaloo ensured his client, financial […]

FCA logo new 620x430.jpg

What to expect from the FCA’s non-advised drawdown review

The announcement that the FCA is conducting a thematic review of non-advised drawdown came as no surprise to the industry. When pension freedoms were introduced two years ago, drawdown went almost overnight from something used mainly by high-net-worth individuals who received advice to a mainstream retirement income option available to those who do not necessarily […]


Plans for FCA to withhold fine discounts delayed in Lords

New rules that could have allowed the FCA to withhold discounts to firms who settle on fines early, but do not take action to stop misconduct, have been put on hold as the regulator reviews its stance on financial penalties. An amendment to the Criminal Finances Bill was proposed by Liberal Democrat Peer Lord Sharkey […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm