Financial Conduct Authority (FCA) chair Ashley Alder has been cleared of wrongdoing after an investigation over his handling of a whistleblower complaint.
Last month, a former employee of the FCA claimed that Alder had failed to keep their identity secret, with a second former employee coming forwards with a similar allegation shortly afterwards.
The FCA launched an internal review in response, led by senior independent director Richard Lloyd, who “obtained assurances that there were no other cases that should be brought within the scope of his review”.
Lloyd’s investigation found that while Alder did not follow the watchdog’s policies “to the letter… he had sought to ensure the concerns raised, if appropriate, were acted on”.
In 2021, the first whistleblower had been dismissed for alleged misconduct, then lost an employee tribunal case, which they were then appealing when the complaint emerged.
Alder forwarded emails he had received from the whistleblowers directly to colleagues, but Lloyd concluded that the chair had taken the view “that he was providing information to them of which they were already aware, in order to request advice on the range of matters they contained and to ensure that these were correctly addressed and progressed”.
“The chair routinely consults senior managers on sensitive matters, including obtaining legal advice, within strict terms of confidentiality and indeed their roles require those managers to operate under such requirements generally,” the investigation added.
Lloyd also made recommendations for strengthening the FCA’s internal whistleblowing policy, by making clear that some communication may need to be shared internally on a confidential ‘need to know’ basis so it can be reviewed fully.
A review of the watchdog’s internal whistleblowing policy was already underway, with a revised policy due to be published shortly.
“I take our responsibilities to whistleblowers very seriously,” said Alder in a statement.
“‘These were unusual and complex cases involving two employees who had left the FCA some years ago and who have raised a range of issues over an extended period of time, in one case through multiple public channels.
“I wanted to ensure that, as non-executive chair, I was in the best position to act on the concerns of both individuals.”