A coalition of UK-based consumer groups and advocates has called on key figures in the government to stop the FCA from continuing with plans to delete all staff emails 12 months after receiving them.

The Financial Times reported in February that the regulator’s plans will come into effect from April this year, meaning that all emails received since April 2024 which are deemed ‘unnecessary’ will be deleted.

The announcement raised eyebrows, especially at a time when the regulator is facing growing criticism of the way it operates, both from the government and business leaders.

Groups opposed to the plan have now sent an open letter to the Economic Secretary to the Treasury, plus the Chairs of the Treasury Committee, the Lords Financial Services Regulations Committee and the FCA’s Financial Services Consumer Panel.

The consumer coalition and other groups have asked those in position of power and influence “to urgently seek an undertaking from the FCA to abandon its plans.”

Freedom of information

Critics argue that deleting emails could have a negative impact on Freedom of Information requests, Treasury-mandated external reviews and legal challenges, and could also stop the FCA from doing its own job of regulating the financial sector.

Signatories to the letter argue that ordinary staff members at the watchdog “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.”

According to Andy Agathangelou, Founder of Campaign Group Transparency Task Force: “A prerequisite for good regulation is having credible regulators. 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.”

FCA’s position

In response to the criticism it received after the plan was announced, the FCA put out a statement in February to “set the record straight.”

Ian Phoenix, Director, intelligence and digital at the FCA, said: “We’re not deleting evidence. We’re not hiding information. We’re not reducing transparency. There is no change to our policy of what constitutes a record and how long it should be saved for.” He argued the plan was simply aimed at modernizing how the regulator managed its record, in order for it to become a more efficient regulator in the future.

He also argued that all sensitive information, including emails, will be “saved centrally so they can be accessed if we need to find the information in response to a request.”

But critics have rejected that defence, pointing to the FCA’s own admission that the intention is to reduce “the legal and reputational risk we face.”

They have also said “a claimed intent to preserve important emails cannot be as effective as retaining the entirety.”

The FCA is scheduled to give oral evidence to the Treasury select committee on 25 March, and its bosses are expected to face questions from MPs on plans to delete staff emails.

The regulator is already under immense pressure from the government and the industry for what they call unnecessary regulatory red tape that hinders economic growth and investment in the UK.