UK lawmakers to grill markets watchdog over ‘naming and shaming’ plans

Britain’s financial watchdog will be asked next week to respond to growing political and industry criticism over its “naming and shaming” proposals, according to the parliament’s treasury committee.

Financial Conduct Authority (FCA) chair Ashley Alder and CEO Nikhil Rathi will face questions over the watchdog’s plans to name companies while an investigation is underway, rather than after a probe has been concluded under current practice.

The committee session will be held next Wednesday at 1315 GMT.

“MPs are likely to ask witnesses how the regulator would like to respond to the criticism from stakeholders, as well as whether their plans are likely to be affected by the backlash,” the treasury committee said in a statement.

Financial sector bodies have lined up to slam the plans, saying it would harm the sector’s international competitiveness by putting off foreign companies from doing business in Britain, but the FCA says it would improve “deterrence”.

A separate parliamentary committee has already called on the FCA to pause work on the plans and will also ask Rathi to justify them in a future hearing.

The FCA has indicated it would continue working on the plans, saying that effective regulation is a key foundation to upholding the reputation and competitiveness of UK capital markets.