OpinionSep 16 2016

Time to register disgust with FCA register

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Time to register disgust with FCA register
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Enough is enough – the FCA needs to admit the shortcomings of the financial services register and act to address these problems.

The Financial Conduct Authority came under fire from the complaints commissioner last week for the way it listed a former Sesame adviser.

The commissioner recommended the FCA pay the adviser £6,000 in compensation, but the regulator refused to cough up to the adviser that it wrongly listed as suspended on the financial services register.

The FCA admitted the register displayed a former trading name of the adviser’s firm, which was suspended, without making it clear the suspension related to a firm her current business was no longer associated with.

Instead the FCA said: “The register holds hundreds of thousands of entries for firms and individuals. Robust processes have been designed to remove the risk of errors occurring.

“Correcting these matters should not, however, create an expectation that substantial compensation will be available where errors occur.”

Everyone makes mistakes and I don’t back a “where there is blame there is a claim” culture but it is time to say “Yes, everyone makes mistakes but the register is too important to fail to clearly communicate to consumers.”

A register is an important document. “Register” is defined as an official list or record of items or names.”

The financial services register is a public record that consumers rely on to check you aren’t some dodgy dealer.

It is a very important register as it should stop consumers falling into the clutches of pension scammers, rogues and thieves.

The register shows details of firms, individuals and other bodies that are, or have been, regulated by the Prudential Regulation Authority (PRA) and/or the Financial Conduct Authority (FCA).

As the comment section of FTAdviser has shown in the last few weeks, rather than clarify the type of person your clients are dealing with the Financial Conduct Authority’s register it is sometimes confusing them.

Several FTAdviser readers have noted they have raised concerns with the way their firm is listed too – I can reassure those readers, we are asking the Financial Conduct Authority to explain these confusing listings.

I think the FCA needs to stop being defensive and admit any fault in a register on this nature simply isn’t good enough and state how it is going to take action to end the confusion this document can create.

This week my youngest child started school and he therefore started his listing on another very important register – his class one.

If a teacher recorded a pupil as attending school in the morning and then failed to take the register after lunchtime and clock a child in their care had gone missing, there would be outrage.

As the regulator’s register is failing to always accurately portray your whereabouts and employment history, you are right to be outraged too.

If you have experienced a problem with the way you are listed on the register, please let me know by emailing emma.hughes@ft.com and share your thoughts in the comment section below.

It is vital this register is an accurate public record. We will tackle the regulator on when you feel it has failed to make this register as crystal clear as it should be.