The Transparency Task Force, outside Britain’s Financial Conduct Authority headquarters on 26 September, rallied for a complete overhauling of financial regulation. The protest came in the course of this annual public meeting by the FCA, bringing to light growing concerns over what many feel is the unaccountability and lack of transparency in the UK financial watchdog.
A campaigning group, supported by thousands who claim to be victims of some sort of financial misconduct, gathered in an effort to present grievances against what they see as catastrophic regulatory failures. Many of the demonstrators argue that the FCA did not do enough to safeguard the ordinary people against financial harm and therefore demand radical change in the way that this regulator is operated.
The central demands of the rally were the call for a “civilly actionable duty of care” about the financial firms so that people and companies can be made liable for their acts. The campaign also asked that the loopholes within Consumer Duty need to be closed wherein companies are able to wriggle out of accountability currently. This includes the right to take operators into court when there is failure of regulation leading to financial loss.
This is another significant point that came to the fore through the protest, such as a lack of government involvement within FCA, where the Transparency Task Force is campaigning for an oversight body led by the consumer. Such a supervisory body would in turn oversee some of the key appointments within the FCA and question its performance in executing its activities. Additionally, it will have effective complaints handling.
Andy Agathangelou of the Transparency Task Force described the way the FCA has treated internal whistleblowing cases. He told how the FCA’s chair Ashley Alder assented to two employees who were whistleblowers not being allowed to keep their anonymity after he had promised them that their identity would remain secret, but no adverse findings were made against him. “It’s just marking its own homework again,” said Agathangelou, who repeated that some outside oversight should be created so the FCA’s procedures can be seen to be fair and transparent.
Fraudulent IFA Case Study Related with QROPS
Protester Paul Birch fell victim to a Qualifying Recognised Overseas Pension Scheme (QROPS) scam after receiving advice from an Independent Financial Advisor (IFA) who fraudulently claimed to hold a Level 6 pension transfer qualification. The IFA was eventually suspended by the Chartered Insurance Institute for misrepresenting his credentials.
During the rally, Birch spoke to Professional Adviser and shared how, when he approached the FCA for assistance, they dismissed his case, stating that it was outside their jurisdiction once the pension had been moved overseas. In his case, the responsibility for regulation lay in Malta. He explained, “My MP has contacted the FCA and HM Revenue & Customs several times on my behalf, but they keep passing the buck, claiming it’s not their issue.”
Birch further alleged that senior FCA officials, including CEO Nikhil Rathi and executive director of enforcement and market oversight Therese Chambers, have now blocked his email address, adding to his frustration. He stated, “The FCA appears more interested in safeguarding its own regulated firms than protecting consumers like me.”
One of the rally speakers, former FCA employee Jasthi Alom, is also in the process of legally challenging the regulator. Alom stressed that reform is urgently needed within the FCA, warning that without significant change, the regulator is on the brink of becoming another public scandal, potentially as disastrous as the Post Office case, with dire consequences such as financial losses, devastated lives, and even suicides. His call for better regulation is a reminder that without proper oversight, individuals may face the need to file a claim against financial advisor to seek justice.
What to do when the FCA fails to help you in such cases.
When the FCA fails to assist this is where, firms like HT Legal can really help. We specialise in helping individuals recover their money in cases where an IFA has misled them regarding pensions, investments, or other financial matters and we are able to pursue action through the courts when necessary.
We experienced in dealing with the regulated firms at fault, the Financial Ombudsman Service, The Financial Services Compensation Scheme and the FCA to ensure you get the compensation you owed to you.
