Yahoo Finance Bank of England’s Bailey Joins Debate on ‘Name and Shame’ Powers
(Bloomberg) -- The governor of the Bank of England has weighed in on controversial plans by the UK’s Financial Conduct Authority to publicly name some firms that are under investigation at an early stage.
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Andrew Bailey described a tension between the principle of being innocent until proved guilty, and the reality that if a regulator can’t reveal a long-term investigation then mis-selling to consumers may continue.
“It’s relevant to us as a regulator,” Bailey told reporters on Thursday, referring to the Prudential Regulation Authority, which is part of the BOE. “We need to get back to how we can reconcile those two potentially conflicting principles, rather than say ‘you can’t do this and you can’t do that.’ There is an issue there, we should think about all the ways we can possibly solve that tension.”
Bailey’s measured intervention comes after a backlash by the financial industry and the government against the so-called name and shame proposals. The FCA says the proposals will encourage witnesses to come forward and will boost transparency and deterrence.
That’s provoked pushbash from politicians and the City of the London over concerns it would diminish the attractiveness of the UK as an investment destination. Chancellor Jeremy Hunt has urged the regulator to reconsider the plan and the Labour Party has said the FCA should listen to feedback from the sector.
--With assistance from Philip Aldrick.
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