FCA chair Ashley Alder has been cleared of wrongdoing against two whistleblowers who alleged he had failed to keep their names confidential.

Mr Alder had revealed their names when consulting senior colleagues over issues raised but an internal review concluded that he “reasonably took the view” that the colleagues would already know the details.

The review, conducted by the board’s senior independent director Richard Lloyd, conceded that Mr Alder did not follow FCA policy “to the letter.”

But it concluded that Mr Alder, “had sought to ensure the concerns raised, if appropriate, were acted on.”

The first allegation was raised in August by a former employee who left the FCA some years ago. A second former employee of the FCA, who also left some years previously, then came forward with a similar allegation.

The review reported that Mr Alder consulted senior colleagues about the cases but “reasonably took the view that he was providing information of which those colleagues were already aware.”

He was also “confident they would treat the information with the utmost care,” Mr Lloyd said.

After publishing the review details, Mr Lloyd made recommendations to strengthen the FCA’s internal whistleblowing policy.

The recommendations included making clear that in the instance of whistleblowing requiring escalation to non-executives, communications will need to be shared with appropriate internal or external expert advisers on a confidential 'need to know' basis. 

The changes will be made as part of a review of the internal whistleblowing policy, which was already underway, the regulator said. A revised policy is due to be published shortly.

Ashley Alder, the FCA’s chair, said: “I take our responsibilities to whistleblowers very seriously. These were unusual and complex cases. I wanted to ensure that, as non-executive chair, I was in the best position to act on the concerns of both individuals.”

He said the review will help the FCA update those aspects which concern information handling, including making clear that, in circumstances similar to these two cases, non-executive directors must be able to access internal senior advice at the outset.

Mr Alder added: “I remain committed to ensuring that all FCA employees retain the utmost confidence in our whistleblowing policy.”

Ashley Alder became chair of the FCA Board in February 2023. He was previously the chief executive officer of the Securities and Futures Commission (SFC) in Hong Kong, a role he had held since 2011. He also chaired the board of the International Organization of Securities Commissions (IOSCO).

He began his career as a lawyer in London in 1984 and practised in Hong Kong for more than 20 years.