The Financial Conduct Authority has accepted a suggestion to provide greater clarity to those who report potential fraud to its investigators.
It comes after a complaint to the Complaints Commissioner from a consumer who had made a report about their bank to the FCA but was told the regulator would not be able to give any feedback on any action it might take as a result.
Antony Townsend, the complaints commissioner, dismissed the complaint because there was no general right for members of the public to know the outcome of reports they make.
But he said: “I acknowledge that there is a difficult balance to be struck between on the one hand protecting confidential information to enable the regulator to do its job and encourage potential informants, and on the other the need to give the public sufficient information and confidence to judge whether or not the regulatory system is operating effectively.
“Whether or not the current position strikes the right balance is a legitimate matter for debate but it is not one that can be resolved by this complaints scheme.
“On balance, I am satisfied that the FCA’s complaint response, that it would not inform you of any action to be taken, or not taken, in response to the information you provided about your bank, was reasonable in the circumstances.
“I have suggested that the FCA considers whether it should revise its approach to provide greater clarity to those who contact it about potential fraud that affects consumers and firms.
“I am pleased to say that the FCA’s complaints team has informed me that it accepts this suggestion and will take it forward internally.”
The complaint was made to the FCA after the consumer noticed their bank had opened an online account in their name without their knowledge.
But the consumer was told by the FCA that it would not be able to give any feedback on any action it might take as a result of this report.
In their complaint, the consumer acknowledged current investigations could not be made public but wondered why the FCA could not tell informants of any outcomes once an investigation was over.
Mr Townsend acknowledged this was frustrating but said he used his position as complaints commissioner to access the files and confirmed the information the consumer provided was used as part of supervisory work.
Steve Carlson, a chartered financial planner at Carlson Wealth Management, said: "I have used the line twice and I have no idea whether that was followed up or if the FCA did anything. It's a bit frustrating. You feel like it is going into a black hole and I know I'm not the only adviser who feels like that."
damian.fantato@ft.com
