Steven Francis Comments on Financial Conduct Authority Abandoning ‘Name and Shame’ Proposal for Regulated Firms

London insurance partner Steven Francis spoke to Accountancy Age and Thomson Reuters Regulatory Intelligence on the now-abandoned Financial Conduct Authority (FCA) proposal to introduce a public interest test for the disclosure of investigations into regulated firms following opposition from industry leaders and government officials. 

The initial proposal, which has been confirmed to be shot down, would have allowed the FCA to name firms under investigation if it deemed it in the public interest. Critics of the proposal said that premature disclosure could unfairly impact businesses, particularly those that conclude without legal action. Francis noted that the FCA’s goal of preventing harm caused by companies under investigation could be met with other supervisory tools at its disposal. 

“With growth now being the focus of attention, this proposal was looking out of touch with the current thrust,” Francis said. “If the FCA improves its enforcement hit rate, then maybe this can be resurrected, but with most investigations ending without disciplinary action the proposal looks regressively anti-business.”