A pressure group advocating for improved standards in the financial sector has accused the Financial Conduct Authority (FCA) of presenting a misleading narrative during its recent online annual meeting. The Transparency Task Force (TTF) has reached out to FCA chairman Ashley Alder and chief executive Nikhil Rathi with serious allegations regarding the agency’s remarks about investor protection policies.

The TTF claims that statements made during the meeting were “factually inaccurate” and criticized the format of the public meeting, which did not allow for real-time questioning of FCA officials. The event was held digitally, with all external questions pre-selected and relayed by Alder.

This forceful communication has also been shared with Tulip Siddiq, the Treasury minister overseeing financial matters, and Dame Meg Hillier, the recently appointed chair of the Commons Treasury select committee.

During the meeting, FCA representatives, including Rathi and deputy chairman Richard Lloyd, suggested that parliament mandated the implementation of the “consumer duty.” However, the TTF argued that legislators had originally recommended a more stringent “duty of care” for the financial industry, branding the FCA’s assertions as misleading.

The TTF has called for the FCA to clarify its statements publicly to ensure accurate representation of the facts.

TTF founder Andy Agathangelou emphasized the importance of accountability during the meeting, stating, “It is unacceptable that no one was able to challenge the assertions made. The narrative regarding the consumer duty was particularly misleading, as it implies parliamentary involvement that was not accurate. Politicians had instructed the FCA to engage on a duty of care—a concept that carries specific legal implications and is distinctly different from what the FCA proposed.”

This critique emerges during a challenging period for Alder, who was recently found to have violated internal protocols related to whistleblower confidentiality. Following an investigation led by Lloyd, it was determined that while Alder did not adhere strictly to the rules, his actions were deemed “reasonable” under the circumstances.

Agathangelou holds additional roles as chairman of the All Party Parliamentary Group on Investment Fraud and Fairer Financial Services and as co-founder of an organization for investors affected by the Woodford scandal.

While acknowledging the necessity of online meetings during the COVID-19 pandemic, Agathangelou advocated for a return to in-person or hybrid formats as normalcy resumes. He asserted that having an engaged audience present facilitates immediate questioning of contentious statements, which could have rectified the misleading claims regarding the consumer duty.

In his correspondence, Agathangelou referenced critical comments from a recent article in The Times that described the online meeting as overly managed.

In response to the backlash, an FCA spokesperson stated: “After thorough consultation, we implemented the Consumer Duty, which establishes a general duty of care. We stand by our assurance that it fulfills the expectations set by parliament.”

Sources indicated that regulatory provisions allowed for consultation on alternatives to a duty of care, a detail not included in the TTF’s letter.