MPs have refused to grant the regulator the power to ban individuals before its investigations into them are completed, due in part to the "serious harm" it could cause small firms.
The then regulator the Financial Services Authority (FSA) called for the power back in January, during an evidence session on the Banking Reform Bill. Tracey McDermott, then head of enforcement at the FSA, and now in the same role at the Financial Conduct Authority (FCA), told MPs on the committee on banking standards that most enforcement cases take over a year to conclude, and in that time those individuals being investigated are free to carry on working in the financial services industry. She asked for the power to impose an interim prohibition order on individuals with a controlle...
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