London-based IFA Wexdon Financial Services submitted a Freedom of Information request to the regulator to find out whether individuals have been held to account over the recent PPI misselling scandal which could cost the industry around £10bn in compensation.
In the regulator’s response, seen by Money Marketing, the FSA says: “No FSA regulated persons have been disciplined by the FSA for PPI misselling over the past three years. There are no cases currently being formulated against FSA regulated persons for disciplinary proceedings for PPI missellng.”
Wexdon’s own analysis of FSA final notices between 2009 and 2012 found just one enforcement case against an individual connected to PPI misselling, but this related to compliance oversight failings rather than unsuitable sales.
In June 2010, the FSA fined David Head, director at IFA network FT Compliance Services, £10,500 for failing to ensure systems and controls were in place to ensure suitable recommendations of PPI.
Wexdon founder and IFA Richard Briggs, who submitted the FoI, says: “Banks have put aside billions for compensating customers who were missold PPI, but the FSA has done nothing to bring those culpable persons in the industry to account.
“The public are entitled to expect that a regulator will act efficiently and effectively to maintain standards, and root out and penalise unacceptable behaviour, to maintain the integrity of the market. The FSA was asleep at the wheel when the misselling occurred and it seems it is still asleep when it comes to effective regulation.”
An FSA spokesman says: “To bring a case against an individual there needs to be strong evidence about that individual’s culpability.”