Britain's financial watchdog conceded on Wednesday it had been surprised by the "stern reaction" from the industry about its proposals to "name and shame" companies under investigation, but brushed aside a finance ministry call to ditch the initiative.

 

Grilled by the cross-party parliamentary Treasury Committee, the Financial Conduct Authority's (FCA) CEO Nikhil Rathi said it would take several months to consider a backlash, in which the regulator has been accused of sidelining a new duty to promote the industry's international competitiveness.

"It is ... really clear there is no presumption to disclose or name (companies)," FCA Chair Ashley Alder told the committee. "As we develop this, discuss it, take on board the feedback, we will start thinking about what criteria will be applied."

Alder and Rathi said that on "deep analysis" such disclosures were not inconsistent with ensuring competitiveness, emphasising that any such policies would be in the public interest and could be applied in a "factual and measured" way.

The FCA unveiled plans in February to publicly disclose some corporate investigations earlier to deter wrongdoing, encourage whistleblowing and witnesses and reassure the public that it was "on the case". At present, the regulator typically gives details of an investigation after it has been resolved.

But the plans sparked a fierce backlash from lawmakers, industry bodies and lawyers, who argued that naming companies under investigation before assessing all evidence risked "gross unfairness" and harming London's international standing....

 

 more at Reuters