Complaints Commissioner Rebukes FCA

Complaints Commissioner Rebukes Financial Regulator.

The financial services industry regulator, the Financial Conduct Authority (FCA), has been criticised by the Complaints Commissioner.

Whilst financial companies such as financial advisers, pensions, insurance and banking groups have strict rules and regulations with regard to dealing with complaints fairly and within strict timescales set by the FCA and also you, the consumer have a right to an independent arbitrator via the Financial Ombudsman Service (FOS), the FCA does not have any such rules.

There have been a number of complaints made against the regulator and the Complaints Commissioner suggests that when a complaint is made against the FCA, the FCA becomes introverted and defensive. Indeed, the Complaints Commissioner has overturned nearly 15% of decisions made by the regulator for complaints made against it.

Comment

This will come as no surprise to any person who works within the financial services industry. As we have always said: "who regulates the regulator?" Over the years, via a succession of finance industry regulators, namely the Personal Investment Authority, the Financial Services Authority and the Financial Conduct Authority we have always called for accountability. The regulator is not accountable to those people and organisations that pay their "wages". Indeed, when mistakes are made we have never seen "hence role" nor have we seen sanctions by the Treasury for senior personnel at the regulator who seemingly draw huge salaries, spend millions on artwork, entertainment and expenses or have failed to spot significant consumer detriment risks and can seemingly simply increase their levies on the industry to fund their mistakes. Why is it that a financial adviser can be fined and pay compensation where there is negligent advice yet the regulator has never been fined or sanctioned when they are negligent? Whilst we appreciate the role of the regulator is not an easy one, in the 17 years that we have been trading as a forward thinking, award winning fee only financial adviser they have never consulted with us once about any issue and seemingly rely on larger financial, pension and insurance company groups who clearly have a vested interest in steering the regulator towards their own views rather than for the benefit of the consumer and the financial services industry as a whole. For example, when the new fee only advice rules were introduced in 2013 we warned that banking groups would close their financial adviser arms, because they could not cope with fees nor had the required qualifications for their advisers and there would be a huge financial advice gap. We warned the regulator and we warned the Treasury Select Committee of the likely outcome and we were ignored. In our opinion, the regulator is all about "jobs for the boys" and when senior personnel fail in those roles they simply move on to a board position with a large financial group. Even this rebuke from the Complaints Commissioner, we believe things will not change. The FCA's argument will no doubt be that they are getting it right in 87% of cases, so why change?