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The UK's Financial Conduct Authority (FCA) remains firm in its intent to implement a "name and shame" policy to increase transparency in the financial sector.

Despite facing criticism from industry players and government officials, the FCA maintains its belief that enhanced transparency will serve as a strong deterrent and elevate standards of conduct.

UK Watchdog Remains Resolute on 'Name and Shame' Plan

According to a report by Bloomberg, the FCA defended its position, emphasizing the benefits that both firms and consumers stand to gain from knowing which issues are under the watchdog's scrutiny.

Therese Chambers and Steve Smart, the FCA's joint executive directors for enforcement and market oversight, highlighted the significance of transparency, acknowledging past frustrations over the lack thereof.

The proposed policy, outlined in a consultation paper released in February, seeks to disclose the identities of firms under investigation at an early stage. However, this move has triggered an uproar among City lawyers and government figures, as reported by the Financial Times.

Critics argue that premature disclosure could tarnish the reputation and financial standing of implicated firms, potentially undermining the competitiveness of the UK's financial sector.

Push for Transparency

Despite the opposition, the FCA remains firm, asserting that decisions to name firms will be based on the public interest and will not extend to naming individuals to protect privacy rights. Furthermore, firms and individuals will have avenues to challenge the decision to make an investigation public, ensuring a fair and transparent process.

The FCA's push for transparency comes amid a broader effort to expedite investigations and adopt a more focused approach, aligning its practices with those of other UK regulators, such as Ofcom and Ofgem.

Sara Cody, a lawyer at Linklaters, raised concerns about the length of FCA investigations, which currently average around 40 to 64 months, and called for more clarity on how the regulator plans to expedite the process.

As the consultation period extends until the end of April, stakeholders have been granted additional time to provide input on the proposed policy, ensuring that all perspectives are considered in this critical decision-making process.