FSA could be 'throwing documents in the bin' for all we know, says Ellis
Broker Network has blown the whistle on rivals that breach compliance rules and wants the FSA to create an official feedback structure.
Chief executive Grant Ellis has submitted documents to the authority from competitors that it claims are falling short of the necessary compliance.
Ellis said he had had no response and was concerned that there was nothing to prove the FSA was taking action.
“There is no feedback mechanism of any description. There’s nothing to say this is how many whistleblowing incidents were reported, this how many we’ve investigated and this is what happened globally.
“For all we know we could be sending these in and they’re just throwing them in the bin,” he said.
The documents came from two brokers who obtained documents from rivals and were alarmed by the lack of official paperwork.
Cutting corners on paperwork saved time and money, giving rivals a competitive edge, Ellis said.
“One of the best mechanisms to find out the cowboys is to use the market. That’s not going to work if the FSA doesn’t say what it does when it gets the information from us,” he said.
Ellis said he appreciated the FSA had a lot to deal with at present, but that did not make up for the lack of response.
He said he would bring up the matter at an official meeting with the authority early next month.
“There isn’t any evidence that helps me get comfort that the FSA is responding speedily to breaches of the rules,” he said.
An FSA spokesman said all whistleblowing would be investigated, but its duty of confidentiality made it impossible to introduce an official feedback mechanism.