One of the new powers available to the FCA that wasn’t
available to the FSA is the power to publish a Warning Notice about firms or
individuals who are referred to Enforcement and before the enforcement has
concluded. In fact the notice can be made when the firm is referred
to enforcement. Hitherto it was only possible for the FSA to notify after a
successful enforcement action. This means that if a firm or individual is
referred to enforcement and before the outcome has been determined, consumers
and customers can be made aware of the matter identified by the FCA as a
concern.
In the press release published recently, the FCA writes:
The FCA will
consider the circumstances of each case in deciding whether it is appropriate
to publish details of the warning notice and, if so, what details to publish.
Before making its final decision, it will consult the person under
investigation and will take into account any evidence that publication would be
unfair.
A published warning notice
statement will ordinarily include a brief summary of the facts which gave rise
to the warning notice to enable consumers, firms and market users to understand
the nature of the regulator’s concerns.
Just another no-small matter to be aware of.
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