The Office of the Complaints Commissioner has scolded the Financial Services Authority for withholding pertinent information from its complaint investigation procedures.
In his annual report, complaints commissioner Sir Anthony Holland referred to a complaint which was upheld against the FSA last year regarding its behaviour in an informal meeting with a firm.
In March of this year, the FSA publicly apologised for “ambushing” the directors of PVM Oil Futures without telling them beforehand what the true purpose of the meeting was.
During his investigation into the matter, Sir Anthony found that not all pertinent communications had been shared with the FSA’s own complaints team, or even with himself, until he had repeatedly requested additional information.
In his investigation at the time, he said he was “disappointed” at the lack of disclosure by the FSA.
He said: “Either the senior investigator did not ask to see this further information, which I requested or it was withheld from him. Whichever is the answer both represent unattractive scenarios.”
In his annual report published this month, Sir Anthony said: “Failing to provide full disclosure to the complaints team and the commissioner immediately suggests that those who are the subject of a complaint, whether individuals or an area within the FSA, have acted inappropriately and are trying to ‘hide’ their actions.”
“Such action is an unattractive position for the regulator or any body undertaking a public function to accept.”
The FSA confirmed to FTAdviser earlier this year that it would take no disciplinary action against the individual at the centre of the investigation even in light of the commissioner’s ultimate decision to uphold the complaint and the lack of full disclosure during the investigation.
In its own final notices against regulated firms and individuals, the FSA will often criticise firms for not being “open and cooperative” with its own investigation.
Elsewhere in Sir Anthony’s report, he revealed that the number of new and re-opened complaints received in 2012/2013 was 127, down from 159 in the previous year.
He added that common themes among the complaints were fee disputes between firms and the FSA, and late submissions of RMAR or Gabriel forms, as well as several complaints over the FSA’s decision to implement the Retail Distribution Review.
