The Financial Conduct Authority (FCA) is experiencing significant pushback from government and finance leaders over plans to 'name and shame' companies under investigation, according to the Financial Times.
This initiative, detailed in a February consultation paper, aims to enhance transparency and deter misconduct in the market.
However, it has sparked concerns among City executives and officials about potential damage to the competitiveness and reputation of London's financial sector.
Critics, including Miles Celic of TheCityUK, argue that such preemptive disclosure breaches the principle of 'innocent until proven guilty' and could needlessly harm firms' reputations, especially since many FCA inquiries conclude without further action.
Additionally, the proposal has stirred discontent over perceived regulatory overreach, notably in recent diversity and inclusion mandates, which some believe could inhibit economic growth and innovation, the FT article said.
Despite these concerns, the FCA maintains that the change would align its practices with other UK regulators and insists on the necessity for early disclosure in the public interest. The consultation period has been extended to allow for more comprehensive feedback on the potential implications of the policy