The new financial regulator aims to step up the response to whistleblowing and market intelligence received from the industry about potential misconduct.
A frequently asked questions document about moving to the Financial Conduct Authority was published last week.
It says: “The FCA is going to place a lot of emphasis on the data and other intelligence we get in from the industry. We are going to use this as a key way to find out what is happening to consumers and in the market.”
IFA Centre managing director Gill Cardy met the FSA last month to discuss concerns among members about the lack of an effective whistleblowing process to highlight poor practice and risky products.
The FSA told Cardy it had strengthened its process so there is a central point within the regulator that collects market intelligence and decides whether a case should be built. Details of those making allegations is kept confidential.
Cardy says: “It is up to firms to say something if they see an issue, then it is up to the regulator to act. If nobody raises concerns, the FSA will not know about it and nothing gets done.”