Name and shame power
THE new Financial Conduct Authority (FCA) will have the power to “name and shame” firms before they have been found guilty of any wrongdoing, as revealed by the government’s draft legislation for a new financial regulatory regime.
But those accusing the firms of misconduct will not be named, which City lawyers have said goes against normal judicial procedure.
Robbie Constance of law firm Reynolds Porter Chamberlain said: “These reforms set out to improve transparency, yet create inequality. Were the case heard in court both parties would be named.”
The FCA will have the power to make public the fact that enforcement action has been started against a firm even if no action ends up being taken.