You are here: Home - Investing -

Lord Flight ‘horrified’ by warning notice publication plans

Written by:
Plans to allow the new financial regulator to publish warning notices about enforcement action have been branded as “unjust and dangerous” by a Conservative peer.

The Financial Services Bill, which is currently making its way through the House of Lords, will give the Financial Conduct Authority (FCA) the power to publish the notices without even having to consult firms, and the plans have received strong backing from consumer bodies.

However, the proposal has already been criticised by the Treasury Select Committee, and Lord Flight has now added his voice to the concerns.

“The Bill enables the FCA to publish warning notices before there has been any sort of a fair hearing, and I think that is completely wrong, unjust and dangerous,” he said.

The former Investec Asset Management chairman cited the damage done to Standard Chartered after the New York State Department of Financial Services revealed it was investigating the bank, and the fact that George Osborne had expresses concerns about this.

“There’s irony in having a Chancellor making critical statements about the New York regulator’s action when they are bringing in the same powers in the UK,” he added.

With the House of Lords set to resume debate on the Financial Services Bill in October, Lord Flight confirmed he will table an amendment to roll back on the plans to publish warning notices and revealed he had already received supportive emails from colleagues.

He also railed against the position of the Financial Services Consumer Panel, which has strongly supported the current provisions in the Bill.

“There has been a transparency argument but I think what they’ve been blind to is that it is unjust and that once you publish something like that, the individual or institution is finished,” he explained.

“I actually am horrified and I shall be quite robust.”

Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
FSA proposes ban on UCIS promotion to ordinary retail investors

The Financial Services Authority (FSA) has proposed to ban the promotion of unregulated collective investment schemes (UCIS) to the vast...