FCA under fire for whistleblower neglect - reports

According to the FT, Masterton, a former employee in the high-risk division at Lloyds, said she was given assurances by the FCA about the seriousness of her case.

She allegedly wrote to FCA chief executive Andrew Bailey last June, describing her treatment by Lloyds.

The FT report said: "She was pushed out of the bank in 2014 after writing an internal report that criticised its handling of a scandal at HBOS, which Lloyds bought in 2009.

"The fraud at HBOS' Reading branch destroyed scores of small business customers, and in 2017 led to six people being jailed for a total of 47 years.

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"Last November, Lloyds apologised to Masterton for its treatment of her, admitting that she acted throughout with 'integrity and good faith'. The bank also paid her an unknown amount in compensation."

The FT said it has seen emails suggesting Bailey failed to act on the "serious criticisms" she made about the conduct of the bank and its senior management.

Masterton has informed Conservative MP Kevin Hollinrake - who has been following the HBOS case - of her situation.

Hollinrake, co-chair of the all-party parliamentary group on fair business banking, has escalated the case to chancellor Philip Hammond asking him to intervene, putting pressure on the regulator to fully investigate Masterton's complaints.

This article was first published by Investment Week, a sister title to International Investment

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