Eight Failures in Corporate Governance

Following recent correspondence with the FCA, eight failures in corporate governance have been identified.

1. Complaints relating to the FCA’s legislative functions, including making rules and issuing codes and general guidance, are excluded from the Complaints Scheme (Most of their activities)
2. The FCA appoints the Complaints Commissioner to investigate complaints against the FCA
3. The Complaints Commissioner has no power to enforce any decision or action upon the FCA
4. The Complaints Commissioner conducts investigations based only on a desk based review of the documentation provided by the FCA and the complainant
5. Any recommendations made by the Complaints Commissioner are not binding on the FCA and the FCA is at liberty not to accept them
6. The FCA is exempt from “liabilities in damages”. Neither the FCA, nor any person who is, or is acting as, a member, officer or member of staff of the Authority is to be liable in damages for anything done or omitted in the discharge, or purported discharge, of the FCA’s functions
7. The FCA has complete discretion over prioritisation in the discharging of its statutory duties
8. After a complaint has been dealt with, the commissioner is legally prohibited from revising his decision, even if compelling evidence is presented that proves the decision was incorrect or unjust. So if, for example, a FCA executive lied in order to ensure the Commissioner found in their favour, the Commissioner is legally prohibited from revisiting the case.

The FCA were asked and have confirmed all of the above.