Publishing Information – Warning Notice Statements

In a move towards more transparent regulation, the FCA now has the power to publish information about firms under investigation at the earlier warning notice stage. This allows it to make public the fact that it has begun formal disciplinary proceedings against a firm or individual. However, unlike final and decision notices, warning notices may not be published in their entirety. The power applies to notices where the FCA is proposing to censure, fine or suspend a firm or individual. It does not apply to non-disciplinary outcomes, such as proposals to withdraw the approval of an individual or to cancel the
permission of a firm.

The FCA must consult those to whom the warning notice is given or copied, prior to publishing any information. It must not publish information if it considers that publication would be:

• unfair to the person with respect to whom the action was proposed to be taken;
• prejudicial to the interests of consumers; or
• detrimental to the stability of the UK financial system.

Where the decision is made to publish the statement, the FCA will also consider whether it is appropriate to identify the subject of the warning notice, in the interests of enabling consumers, firms and market users to understand their concerns. If appropriate, the FCA will make public the name of the firm or individual, including any additional information to identify them and in the case of an approved person, it will also publish details of his/her employer at the time. Information is published in a warning notice statement.

Any warning notice statement the FCA publishes will make clear that the warning notice is not the final decision of the FCA and that the firm or individual involved has the right to make representations to the RDC, which, in the light of those representations, will decide on the appropriate action and whether to issue a decision notice.