Allegations against companies and individuals could be publicised before their appeals are complete, say new proposals
The Financial Conduct Authority (FCA) could publicise the names of companies and individuals involved in enforcement proceedings before the internal appeals process is complete, the Financial Times reports.
The FCA is one of two new financial regulators that will take over from the FSA in April. The FCA will be responsible for regulating insurance brokers.
A consultation released yesterday proposes giving the FCA powers to publish the allegations against firms and individuals contained in so-called warning notices. These are typically issued before enforcement proceedings are ruled on by the Regulatory Decisions Committee.
The government argues that publicising the allegations will boost investor confidence and make it easier for customers and business partners to make judgements about the companies they work with, The FT said.
Lawyers and industry groups argue that publishing the allegations before they are ruled on by the Regulatory Decisions Committee flouts the principle of being innocent until proven guilty.
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