Planned pre-emptive regulatory powers "a nonsense" - RPC
City law firm Reynolds Porter Chamberlain (RPC) has warned the Government’s plan to hand the new financial services regulator the power to publicise an investigation before it is completed is contrary to principles of natural justice and makes a nonsense of the existing statutory requirement of confidentiality.
Steven Francis, a regulatory partner at RPC, said: "By pre-emptively informing a firm's clients of its investigation the new regulator could do serious damage to the firm's reputation and business. The Financial Services Authority (FSA) regularly commences investigations that lead to no disciplinary outcome. The firm either satisfies the FSA there has been no wrong-doing; or the FSA simply gets it wrong.
"The Government will therefore have to tread very carefully when implementing this power
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