The latest FCA annual report revealed the City watchdog received more calls from whistleblowers warning about the behaviour of financial advisers than any other part of the industry.
In the past year the watchdog revealed it processed 1,340 intelligence cases containing sanitised information from whistleblowers - a 28 per cent increase on 2013 to 2014 complaints.
The number of cases has more than trebled over the last five years and financial advisers were the subject of 271 cases this year, the FCA’s annual report revealed today (2 July).
Despite the record number of complaints, the intelligence received from all whistleblowers last year directly contributed to FCA enforcement activity or the protection of consumers through other intervention in only 10 cases.
It is not stated by the FCA if any of these cases involved financial advisers.
Out of the 1,340 whistleblowing cases, the FCA stated 759 had been fully assessed and actioned accordingly.
This was followed by consumer credit organisations with 208, retail banking at 156, retail insurance at 155, unauthorised businesses with 126, markets at 113, investment banking at 93 and asset management at 35.
Commercial insurance saw 24 cases, mutuals and credit unions hit 18, Sipps saw 10 cases, mortgage intermediaries had seven cases, building societies six, payment services three and friendly societies had two.
The most common cause of the complaints were the fitness and propriety of individuals, the culture of an organisation and consumer detriment.
The regulator revealed whistleblowers were increasingly concerned about pressure on sales results, including the setting of sales targets.
The FCA also revealed it shared information with external stakeholders – including National Crime Agency, police forces, HMRC, Solicitors Regulatory Authority, other UK and overseas regulators – in more than 160 cases.
Information from whistleblowers has contributed to firms and individuals being fined, permissions being varied or withdrawn, warning letters being issued and a range of other early intervention actions, such as asking a firm for clarification about their activities.
emma.hughes@ft.com
