The Financial Conduct Authority’s chair is refusing to resign despite being under pressure after not adhering to the watchdog’s whistleblowing policy.
Ashley Alder received criticism last month for disclosing the identity of an anonymous whistleblower. The whistleblower sent Alder emails in December and March, expressing concerns about “opaque employment practices” at FCA.
Alder, however, was accused of forwarding the whistleblowers’ correspondence and revealing their identities without their consent. This is contrary to the policy of the regulator.
The Financial Times reported that the whistleblower was “angry, shocked and speechless” after seeing the emails forwarded without redaction.
Unsurprisingly, a second former FCA employee has also made similar claims.
Richard Lloyd, senior independent director of the regulator’s Board, conducted a review that was published on Monday by the watchdog. The review found that Alder had “not followed the policy to the letter”, when he sent the emails.
The report stated that, “while the FCA chair did not follow the existing policy to a tee in handling two complicated cases, he sought to ensure, if necessary, that the concerns raised were addressed”.
Lloyd wrote that Alder acted in the “firm belief that there was not realistic prospect of harming them”.
He said that the chair “consulted senior members confident that they would treat this information with the greatest care.”
Alder’s actions attracted criticism because the FCA has responsibility for policing whether firms that provide financial services have whistleblowing policies in place, and they have to ensure that whistleblowers are protected.
Georgina Hallford-Hall is the chief executive of WhistleblowersUK. She said that this incident was cause for resignation. Kevin Hollinrake said Alder should “consider his position, obviously.”
Alder, however, said that after the regulator’s public annual meeting on Thursday “it never crossed my mind” to quit.
He said: “I am absolutely certain that I acted in the best interests of my country.” “Of Course, if an impractical policy creates expectations, we regret not being able to meet those expectations in this case.”
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