FCA pledges to improve register after consumer fraud case

In a letter to Treasury Committee chair Nicky Morgan, Bailey referenced a recent Telegraph article which revealed a consumer had been a victim of fraud after the FCA's register stated that a firm was authorised and active, despite it being dissolved. Scammers had taken over the closed company's name to dupe and defraud the victim of over £44,000.

Bailey admitted that "there have been instances when information displayed on the Register has been out of date", and said it was important for the FCA to overhaul the Register.

Bailey added that the onus was on firms to keep details up-to-date as part of their authorisation, but noted that the FCA has recently implemented new prompts via email and phone to ask firms whether any details have changed.

In his letter, Bailey added: "We are developing proposals to strengthen the regime for the reporting of firm data with the overall objective being to improve the quality and reliability of key pieces of information that consumers and firms rely upon.

"Alongside a strengthened reporting regime, we are exploring the viability of making the Register in some way publicly indicate when a firm's information has not been updated within required timeframes."

He added that the FCA has put in new processes to ensure information received about firms entering administration is "promptly acted upon",which was a direct result of a complaint made against the FCA and reported in the Telegraph article.

Other improvements includer improved search facilities within the Register and a new facility for consumers to search for financial advisers near to them.

Going forward, Bailey said the FCA plans to implement services that can integrate Register data with other data which consumers use and introduce new safeguards to ensure the accuracy of the data on the Register.