View more on these topics

Davies suggests FSA could name firms under investigation

The FSA is planning to name companies it is investigating as a means of reminding consumers of caveat emptor, according to outgoing chairman Sir Howard Davies.

In an interview with a national newspaper, Davies, who is leaving the regulator in September, said the FSA will change its policy in the autumn as to what it can reveal about ongoing investigations.

But the suggestion that firms may be publicly named before they have been found to have done anything wrong has been met with indignation by IFAs, who question whether such a move would not be against English common law.

They say that while the FSA is right to make general statements about ongoing investigations, it should not name specific firms.

Despite Davies&#39s comments, the FSA is already attempting to distance itself, saying there would have to be full consultation, including conversations with its lawyers, before any policy change was pursued.

Davies said: “We have concluded that we ought to relax this policy to some degree and, in order to do that, we need to consult. It might be the best way of alerting people to caveat emptor.”

Informed Choice managing director and Sofa chairman Nick Bamford says: “Isn&#39t that against English law? Didn&#39t we used to have a principle of innocent until proven guilty? This is a completely outrageous suggestion.”

The FSA has also said that it plans to invoke its powers of arrest to detain those suspected of criminal market abuse. It has had the authority to arr-est individuals since it came into being in December 2001 but has never opted to use it before.


The miles file

New Star has made much of its performance record of late, centred on the statement that all but one of its equity funds is top-quartile since launch.After all, John Duffield, former head of Jupiter Asset Management and now the driving force behind New Star, has never been one to make little of his achievements.Judged by […]

More misselling claims on the way City law firm warns

The industry could face another raft of misselling claims when the next wave of structured products mature this month despite the rallying markets, City law firm Reynolds Porter Chamberlain has warned. RPC points out that Scottish Life International, Scottish Mutual and Pinnacle Insurance are all among those which have stock-market linked so-called precipice bonds maturing […]

First-time buyer numbers continue to fall – Halifax

Halifax&#39s house price index shows that the number of first time buyers coming onto the market is at its lowest level since records began in 1974. The figure fell to 174,000 in the first six months of this year compared to 253,000 in the corresponding period last year. House prices increased by 1.3 per cent […]

Advantage to run network for packagers

Sub-prime packager Advantage Mortgage Services is starting a national network for mortgage packagers.The network will provide a range of products for members along with mortgage processing software and a training and development programme.Advantage has already signed up one packager, Derby-based Future Finance, and hopes that 50 others will join. It says it has 20 further […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm