The regulator has agreed to review its processes for updating the financial services register and will compensate an investor who was scammed after relying on incorrect information.
A final report from the Complaints Commissioner says a complainant used the register to check the authorisation and defaults history of a credit union before buying bonds.
The complainant was them scammed by a different firm purporting to be the credit union.
The final report says the financial services register showed the credit union was still authorised and active until recently, despite having been defunct since 2012.
Complaints Commissioner Antony Townsend says the complainant should be compensated because they undertook the appropriate level of due diligence checking and relying on the FCA’s information.
Subsequently, Townsend has confirmed the FCA failed to update the register for four years.
Townsend says: “A clone firm perpetrated the scam, however, this scam was facilitated by the inaccuracy of the FCA register, which was not updated for some four years despite the FCA having information to show that the credit union was not trading.”
“The FCA accepts that you might not have made the investment if the register had been accurate.”
Townsend also says the £150 offered to the complainant by the FCA after it upheld the complaint is not sufficient.
A sum of £22,137.50 has been ordered by Townsend to be paid out by the FCA, representing 50 per cent of the complainant’s loss. The £150 will also be paid.
Responding to the Commissioner’s report, the regulator says: “The FCA is reviewing its process for updating the Financial Services Register when it is aware that a firm is no longer trading.”