View more on these topics

FCA abandons seven investigations due to ‘lack of evidence’

FCA logo glass 2 620x430

The FCA has abandoned seven investigations into individuals since 1 January 2015 because of a lack of evidence, Money Marketing can reveal.

Money Marketing filed a Freedom of Information request after it was revealed in August the regulator ceased its investigation into Lloyds Banking Group head of gilts trading Tony Gray because there was no case for him to answer. The investigation into Gray concerned the manipulation of the government bond market.

Responding to the FOI, the regulator did not provide information about the nature of the seven formal investigations because it considered disclosing those details would lead to potential identification of the individuals.

Compliance and Training Solutions director Mel Holman says the regulator should not be criticised for starting investigations only to later throw them out.

Holman says: “That is what the regulator is there for. They have been accused so many times of, ‘why aren’t you looking into this, it’s been whistle-blown’. At least they are doing something.

“Isn’t it better that somebody gets investigated and they are happy there is no further evidence and therefore dropped – you can’t say it is a waste of money.”

The Financial Inclusion Centre co-director Mick McAteer agrees. He says: “It is right and proper that if the FCA finds out there is not sufficient evidence that the case should be dropped. That is showing there is proper process working.

“If you don’t have some preliminary investigation how do you know whether they take it on further? If you adopted a far too cautious approach then it would be difficult to uncover evidence about anybody.

“It is a huge market and there are still a lot of unscrupulous practices going on and the regulator has to work hard to uncover the evidence.”

Holman says going through an investigation is stressful, even if it is later discontinued.

She says: “Whenever I speak to our clients it puts the fear of God into them. Of course it is a worry and a burden and it is stressful. When it is dropped there will be a mixed feeling of relief.”

Recommended

13

FCA investigates providers over enhanced annuity concerns

The FCA is investigating a number of annuity providers amid concerns they failed to inform customers they may be entitled to a higher rate of income through an enhanced annuity. The regulator conducted a review of 1200 non-advised sales at seven firms, which between them account for approximately two-thirds of the annuity market. While it found […]

13

Data overload: What is the FCA doing with regulatory returns?

Advice firms and the wider profession have called on the FCA to provide more insight into what it does with regulatory returns as questions are raised about whether the data is an effective part of the supervision process. The FCA’s reporting system Gabriel, which stands for “gathering better regulatory information electronically,” is intended to do […]

Baker-Steve-Profile-620x430.jpg
2

Treasury committee MP: We are holding the FCA to account

A Treasury committee MP has claimed the Government is effectively holding the FCA to account. Speaking at an event hosted by adviser trade body Libertatem in High Wycombe last month, Steve Baker pointed to a number of recent inquiries by MPs into the FCA that had held the regulator to account. These include sessions on the […]

Certification guide

Guide: how to… certify your pension scheme

Certification is highly complex and surrounded by a minefield of information and auto-enrolment jargon, which can make it very difficult to understand. However, for many employers it is a necessary process that must be executed successfully.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. I would like to think that the FCA will expunge all evidence of any investigation once they drop it due to no evidence was found to substantiate such allegations.

  2. terrible grammar, apologies – should have written no evidence having been found to substantiate such allegations

  3. “This is what the regulator is there for” ?

    Is it?, or are they (the FCA) just fishing by issuing s166’s ? a guilty till you prove your innocence tactic ? this is VERY expensive for the recipient only for the FCA to drop the case like a stone because the poor guy was innocent all along !

    And as Holman says, these poor people have the fear of god put on them and the stress and burden is IMHO not right.

    The FCA always say “if you do nothing wrong you have nothing to fear” yeah right ! I am fed up with them peeing down my back and then tell me its raining !

  4. Interesting!! I’m not sure where the FCA is now with Connaught, but certainly worth re-reading the background to the whistleblowing aspect on this debacle, which the FCA have ‘kindly’ overlooked/ignored … see http://citywire.co.uk/new-model-adviser/news/mps-criticise-fca-over-treatment-of-connaught-whistleblower/a931604

    Background reading suggests that there may have been more than enough evidence provided by Patellis for the Regulator to press on, but they decided to … … well, sit on their hands …

Leave a comment