Key facts
- FCA Chairman Ashley Alder faced calls to resign at the regulator's annual public meeting in Edinburgh.
- The meeting became highly charged due to scrutiny of the FCA's record on whistleblowing.
- An internal review of the FCA's interaction with whistleblower Simon Andriesz, who died last month, will be led by Lea Paterson.
- Simon Andriesz had made disclosures to regulators in the UK and US and had criticized his case's handling.
- The FCA acknowledged giving Mr Andriesz incorrect information about his whistleblower protection and apologized.
- The FCA received around 1,300 whistleblowing cases annually, with 42% leading to direct action last year.
The Financial Conduct Authority's annual public meeting in Edinburgh was largely overshadowed by criticism of the regulator's handling of whistleblowers. Chairman Ashley Alder faced sustained pressure and calls to resign from campaigners, including Andy Agathangelou, founder of the Transparency Task Force, who questioned the independence of an internal review into the FCA's interaction with whistleblower Simon Andriesz.
Mr. Andriesz, a former managing director at BGC Group, died last month after making disclosures to regulators in the UK and US. His case has prompted renewed scrutiny of support for whistleblowers and calls for an external inquiry into the FCA's conduct. The FCA has acknowledged providing Mr. Andriesz with incorrect information about his whistleblower protection and has apologized.
Lea Paterson, a recently appointed independent non-executive director on the FCA's board, will lead the review into the regulator's interaction with Mr. Andriesz. Alder defended the process, stating that non-executive directors are appointed by the government and Ms. Paterson understands her role is independent. The findings of the review are planned to be published early next year.
Chief Executive Nikhil Rathi defended the FCA's broader work, noting that whistleblowing cases are among the most difficult handled by the organization, with around 1,300 cases received annually. He highlighted that 42% of closed reports last year led to direct action to manage or reduce harm, while a further 53% informed wider work. The regulator also noted a 22% increase in whistleblowing reports last year.
The meeting also saw the FCA come under pressure regarding its handling of the Midas Financial Solutions Ponzi scheme and demands from 95 victims for the FCA to cover their legal costs. The FCA had previously apologized after an independent complaints commissioner upheld aspects of a complaint over its failure to act on warning signs surrounding Midas.
Separately, the FCA has defended its proposals to "name and shame" firms under investigation, a plan that has faced backlash from the City and the government, including warnings from Chancellor Jeremy Hunt that it could stifle growth.