Chancellor Jeremy Hunt expressed concerns regarding the Financial Conduct Authority’s plans to disclose the names of companies under investigation. He suggested that revealing this information early on could potentially impede economic growth.
The proposed changes will involve updating the public on investigations from the opening stages through to progress, including revealing the identity of the subject being investigated. This represents a departure from the current practice of only announcing investigations in very limited circumstances.
Mr. Hunt criticized the FCA’s plans for “naming and shaming,” stating that it could negatively impact the financial services sector. The FCA operates independently from the government and is responsible for regulating approximately 50,000 financial services firms and markets in the UK.
Notably, the regulators have been tasked with considering the promotion of economic growth as part of their responsibilities under the “strengthened growth duty.” Despite the proposed changes, the FCA reiterated that announcing an investigation should not be interpreted as confirmation of wrongdoing.
In response to the Chancellor’s remarks, the FCA stated that it would carefully consider feedback received during the consultation process. The regulator emphasized its commitment to facilitating international competitiveness and growth while upholding its primary objectives of consumer protection and market integrity.
Overall, the FCA aims to enhance transparency and accountability through its proposed approach to enforcement. The regulators emphasized the importance of effective regulation in maintaining the UK’s financial markets’ reputation for fairness, cleanliness, and integrity.
During the previous year, the FCA imposed fines on 12 firms for various breaches and failings, totaling over £53 million. Additionally, companies currently under investigation may have their names disclosed under the new changes, despite previous assurances of confidentiality.
Please provide an alternative version of the text.
Source link
