FCA Proposes More Transparency During Investigations

The Financial Conduct Authority (FCA) has published a proposal to name companies under investigation far earlier in the process, to act as a deterrent to others by showing the significant harm flouting the rules does to to consumers and markets.

The FCA is also proposing that it will give the firm which is the subject of the investigation no more than one business day's notice and doesn't envisage a formal process for subjects to make representations or challenge the publication of the fact of the investigation.

So what are the possible legal implications?

It could be difficult to successfully challenge the concept of publicity, but the main issue seems to be the balance between the reputational damage to firms if there is early publicity versus the perceived downside of the FCA having to wait at least until the warning notice stage of an enforcement action.