Watchdog should halt plans for ‘naming and shaming’ firms, says Lords committee The UK’s financial watchdog should not push forward with plans to routinely “name and shame” firms facing investigations, according to an influential House of Lords committee.
The Lords Financial Services Regulation Committee warned that announcing enforcement investigations early without addressing concerns over the plans could damage the reputation of companies who may never face regulatory action.
In a new report, the committee cautioned that the FCA could increase the risk of reputational damage to firms and individuals, and media speculation could arise after investigations are announced without action ultimately being taken.
“Less than 18 months ago the FCA stated that it recognised that the disclosure of an enforcement investigation could inappropriately damage a firm’s reputation if the investigation did not substantiate the FCA’s concerns.
Early last year, the FCA launched proposals which would allow it to announce when it has opened enforcement investigations into financial firms, which it currently only does in very limited cases.
