A coalition of consumer groups and advocates have written to UK ministers calling for the FCA to abandon its plans to delete most emails automatically after a year.
In the open letter, they argue that the policy, which is due to come into effect from 1 April, would undermine attempts to hold the organisation to account. It points out that Freedom of Information requests, Treasury-mandated external reviews and legal challenges would all be adversely impacted, as would the FCA’s own ongoing regulatory work.
The coalition rejects the FCA’s defence that it is not "deleting evidence… hiding information… or reducing transparency", pointing to the FCA’s own admission that the intention is to reduce "the legal and reputational risk we face".
The signatories argue that a claimed intent to preserve important e-mails cannot be as effective as retaining the entirety because "the organisation and its staff cannot possibly anticipate with complete accuracy which emails may be needed in the future, whether for FoI or DSAR requests, Parliamentary Committee inquiries, HMT inquiries, litigation, judicial reviews - or its own supervisory and enforcement activities".
Co-signatory Aleksandra Maczynska, managing director at Better Finance, The European Federation of Investors and Financial Services users comments: "Better Finance actively works with supervisory authorities across Europe, and is concerned by the announced FCA policy of automatically deleting e-mails after 12 months. We would strongly recommend to reconsider setting what could be a dangerous precedent.
Anthony Stansfeld, former Thames Valley Police Crime Commissioner says that the FCA's position is naive at best.
“If my helping to get criminal bankers put where they belong, behind bars; and my disappointing experience dealing with Andrew Bailey when he was CEO of the FCA, has taught me anything, it’s that evidence, however insignificant it might initially seem, must not be thrown away," he says. "The forensic value of just one e-mail can make all the difference in prosecuting a case. You just don’t do it and I’d be suspicious of any statutory body tasked with investigation, regulation or enforcement wanting to automatically delete potential evidence after 12 months."
Andy Agathangelou, founder of campaigning group Transparency Task Force argues that any regulator that introduces a policy that may result in the deletion of important evidence, through error or otherwise, places their regulatory credibility in jeopardy.
He states: "For the sake of what’s left of the FCA’s domestic and international credibility, and given the alarming lack of consultation on this highly contentious issue, I’d like to see the FCA either call a halt to what they are planning to do, or at the very worst put a pause on proceedings until a proper Treasury Committee inquiry about the FCA’s plans and their true motives behind those plans has taken place.”