The Treasury Select Committee (TSC) has said allowing the new regulator to publish early warning notices poses a risk to ‘natural justice' and urged the government to reconsider the issue.
The Financial Services Bill, which amends existing legislation to change the regulatory regime, recently began its journey through Parliament and is currently in its Public Bill Committee stage. In its report on the government's response on the Financial Conduct Authority (FCA), one of the proposed successors to the FSA, the TSC outlined some of its key concerns. It said the publication of the early warning notices, before a final decision has been made in the enforcement process, risked "unreasonable reputational damage" to firms who were found to be innocent. The TSC added: "We a...
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