An internal review has revealed that the UK's Financial Conduct Authority (FCA) mishandled Freedom of Information (FOI) requests, leading to significant delays and improper use of time extensions. The findings add to mounting criticism of the watchdog, which has faced accusations of incompetence and mishandling whistleblower complaints. This article explores the details of the review and its implications for the FCA’s accountability.

Internal Review Uncovers Systemic Issues in FOI Handling

The investigation into the FCA's handling of information requests uncovered a pattern of inappropriate delays. Between July and December 2020, out of 18 FOI requests, only one was processed within the legal timeframe. The remaining 17 cases saw unauthorized extensions, raising concerns about the watchdog's adherence to transparency laws. These delays were not isolated incidents but part of a broader trend of mismanagement that has been under scrutiny.

The review, initiated after an employee raised alarms about "unlawful" practices, found that staff were using time extensions intended for evaluating public interest as a means to delay responses. This misuse was deemed "expressly prohibited" by the review. Evidence of discussing public interest during these extended periods was notably lacking. Furthermore, an analysis of six older cases from 2018 and 2019 showed similar misuses in five instances. The report highlights inefficiencies, poor processes, and inadequate resources as potential causes of these failures.

Criticism Mounts Amidst Whistleblower Allegations and Leadership Scrutiny

The revelations have fueled further criticism of the FCA, which has already faced scrutiny from various public inquiries. In November, a group of MPs and peers accused the watchdog of being "incompetent at best, dishonest at worst," calling for a major overhaul due to "very significant shortcomings." The All-Party Parliamentary Group on Investment Fraud and Fairer Financial Services also highlighted the mistreatment of whistleblowers, noting instances of bullying and sidelining.

In August, it emerged that FCA chair Ashley Alder had forwarded whistleblower emails without protecting their anonymity, breaching confidentiality policies. Although cleared of wrongdoing, Alder was criticized for not following procedures strictly. The employee who triggered the FOI review claimed that the delays were strategically used to manipulate performance metrics, emphasizing senior management's focus on avoiding embarrassment. Despite these challenges, the FCA has taken steps to address the issues, including retraining staff and overhauling the FOI function.