View more on these topics

FSA considering process for FCA’s early warning notices

FSA Front 480

The FSA board is considering what process the Financial Conduct Authority should follow when using its new power to publish early warning notices.

Under the Financial Services Act 2012, the FCA has been given the power to publish early warning notices when it starts to investigate a firm or individual for enforcement action.

Many in the industry have expressed concerns that early warning notices could cause irrepairable reputational damage to firms or individuals who have not been found guilty of any wrongdoing.

In the FSA’s December board minutes, published last week, the regulator says the power should be used in a way that is “fair” and “proportionate”.

It says it will consult on the new powers and outline more detail at its next board meeting.

The minutes state: “The board discussed several factors that might be taken into account when determining the appropriate policy, including how to judge fairness (and whether it was possible or desirable to articulate these in detail given the huge range of circumstances that would be covered), issues of transparency and consumer protection and the balance of fairness and proportionality between individuals and between individuals and firms if an individual’s livelihood was at stake.”

Hudson Green & Associates Ian Hudson says: “The FSA will want to demonstrate checks and balances and show a proportional response. The only way you can respect the regulator is to be on an equal professional footing with it.”


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