FT Adviser quotes Richard Ellis on industry pushback to FCA plans to name firms under investigation
min readPublished on 27 February, a consultation from the Financial Conduct Authority (FCA), which proposes that the regulator will announce when it has opened an investigation (including the identity of its subject), has been met with significant criticism.
The consultation has primarily drawn concerns about the potential reputational harm from publishing a subject’s identity, especially if the investigation concluded without regulatory, civil or criminal action.
Richard Ellis, Partner in our financial services regulation & funds team, highlights in an article for FT Adviser that the FCA has existing power to identify subjects of investigations in exceptional circumstances. He explains:
[...] this weapon is already in the FCA’s arsenal. Any deterrence angle is already covered. Given this, it seems likely that the FCA is asking for greater scope because it wants to use it.
"The FCA’s thinking seems to be that identifying a firm as being under investigation would encourage witnesses and whistleblowers to come forward. That aim could only be achieved if the power were actually used.
Read the full article in FT Adviser here.
