Her wealth management firm SCM Direct, which she heads with her husband Alan Miller, has lodged an official complaint with the Information Commissioners Office due to the FCA failing to respond to a Freedom of Information request made in May.
SCM Direct said it would take further legal action if the FCA continues to delay a response.
The wealth manager had sought information regarding recorded breaches of Mifid II transparency rules, details on how this was being enforced, as well as correspondence between the regulator and industry bodies about Mifid II enforcement.
Widespread non-compliance
“We are still waiting for the FCA to send a clear message that it will act against the worst offenders as this would be the quickest way to ensure widespread compliance,” Miller (pictured) said.
Article 24 of Mifid II requires firms to show all costs, explicit and implicit, in percentages as well as pounds and pence.
Miller slammed the regulator in April for failing to address Mifid II non-compliance in the final remedies and guidance connected to the Asset Management Market Study. She stated SCM Direct had sent the FCA a 90-page dossier highlighting widespread non-compliance within the asset management industry regarding the disclosure requirements within the European Union directive.
“Their earlier incarnation, the FSA found as much as 50% of fees were hidden. Here we are 18 years later, with legislation in place, and still the industry is pickpocketing clients.”
The Freedom of Information request
The FCA told Portfolio Adviser it would respond to the Freedom of Information request by 14 August.
SCM Direct made the request for information on 19 May.
Public authorities typically must respond to Freedom of Information requests within 20 working days. Miller said the regulator has told her it needs more time to consider whether the information is in the public interest.
The SCM Direct request sought the following information:
- details of how many firms the FCA has written to in order to notify the firm that they may be or appear to be in breach of the rules
- details of how many firms have self-reported to the FCA for breach of the rules
- details of how many instances a potential breach by a firm of any of the rules has been communicated to the Enforcement referral team by FCA supervisors
- details of how many firms have been considered at the FCA’s enforcement referral meeting for a potential breach by a firm of the rules
- the number of occasions the FCA has appointed investigators in order to investigate a potential breach of the rules
- details of meetings and correspondence between the FCA and industry trade bodies or representatives concerning implementation of the rules.
