MPs told public warning notices will 'disengage' consumers

The comments appear in the government's white paper on financial services reform, A new approach to financial regulation: the blueprint for reform, which includes responses to the government's February consultation. One of the proposals in the February paper was to allow the FSA's successor the Financial Conduct Authority (FCA) to publish warning notices against firms which may face regulatory action. But industry respondents told MPs the disclosure could have "unintended consequences" if consumers lost confidence in the industry and hence made irrational or uninformed decisions. A...