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FSA slammed over Keydata discs blunder

The FSA has come under fire from the Complaints Commissioner for a data blunder that could have led to sensitive and confidential information about its Keydata investigation being released to the public.

The FSA is currently at an advanced stage of its investigation into Keydata and its directors following the firm’s administration in June 2009 and subsequent client losses which has seen the Financial Services Compensation Scheme agree to pay out up to £400m.

The Complaints Commissioner has recently published two complaints relating to the delivery of the FSA’s preliminary investigation report into Keydata, containing 5,000 pages, to Keydata director Mark Owen and head of compliance Peter Johnson last August.

The courier delivered the package, containing confidential information stored on unencrypted discs, to a neighbour of Owen’s between 10pm and 10.30pm on August 31. Money Marketing understands the neighbour lives half a mile away from Owen and does not know Owen personally.

In his reply to Owen, Complaints Commissioner Sir Anthony Holland writes: “The FSA’s actions allowed itself to be placed in a position where the unencrypted discs could have been passed to a third party and the confidential and sensitive information about a potentially high-profile case could have been released to the media. I have to bear in mind how the FSA has dealt with firms who have lost sensitive and confidential material. I also must ask how the FSA would have responded had the person under investigation either lost the material or released it to the media.”

Holland said delivery of such confidential material after 10pm came close to breaching the right to privacy. The FSA apologised for the mistake and has since amended its processes.

Johnson received his investigation report after 9pm. The FSA was told to make an unconditional apology to his family for the timing of the delivery and the manner in which the original complaint was dealt with. The FSA says it sent the documents late in the evening so that recipients would be given a full 28 days to respond to the investigation reports. It says it regrets its policy of encrypting data was not followed.

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Comments

There are 12 comments at the moment, we would love to hear your opinion too.

  1. and will anyone at the FSA get sacked?

  2. If this had been an IFA he would have been suspended and fined, what will happen to the incompetents at the FSA ?????
    Sweet F-A

  3. The FMSA 2000, does not permit or allow any public criticism of the FSA.

  4. Just another example of complete stupidity by our so-called reglator. It would have been interesting to say the least if these discs had reached the press. Plus the fact that 5,000 pages to be read, digested and replied to in 28 days? That is an average of about 180 pages per day for the full term. It is like asking someone to read a book a day for a month and then report in depth on the contents

    There will of course be no retribution in our gloriously inept regulator . . . after all they are all as useless as one another, from the top down..

  5. Exactly. Government, or government bodies, can break the law or breach their own code of conduct, yet an APOLOGY, can make it go away! Any other person or business would be fined, sacked or even jailed.
    When is this sorry mess going to aired publicly so we can all find out the truth

  6. Now I can see why Ford is having a go at them, good on him.

  7. One rule for them one for us as usual!!

  8. So, for any IFA who is found guilty of a breach of FSA rules in the future there will be no need to worry about the consequences – simply apologise and all will be well. The FSA might even send you a bonus cheque for being more incompetent and useless than other IFAs.

  9. this one rule for us and another for the FSA just makes me sick and post RDR lets see how they are going to get their income when 50% of the fee payers leave the industry

  10. I must say it is a bit rich the Complaints Commissioner having a go at the FSA for data blunder.I put a complaint in to the Complaints Commissioner concerning the FSA.I received two letters from them and part of my address was incorrect on both of them.

  11. The FSA fined Nationwide £1million for a laptop STOLEN from an employees home which had unencrypted Client information on it. Bearing in mind the client’s whose information was on it were members of the mutual, it was effectively a double whammy for the clients, data lost and fined for it too.
    An appology from the FSA is no good, we need to know what action had been taken against the individuals responsible at the FSA for the mistakes.
    They are being paid premium London salaries, with a gym, nice restaurant and offices in some of the most expensve real estate in the country using OUR fees and with no personal responsibility for their own errors and ommissions while they expect us to accept infinite liability and to accept judgements with NO right of appeal.
    Do they think we are stupid and/or will not take their actions personally and make it personal at some point in the future?

  12. Spot the Nationwide employee…..

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