MFA submitted a comment letter to the FCA in response to the agency’s consultation paper 24/2 on the Enforcement Guide and Publicising Enforcement Investigations.
In the letter, MFA raises a number of concerns with the FCA’s plan to name financial firms before an investigation has concluded. MFA believes the proposal would fundamentally undermine the competitiveness of the UK as a global financial centre.
In addition, the letter lists a number of consequences the proposal would have on alternative asset managers, including:
- A sudden increase in investor redemptions
- Material obstacles in attracting new investors and an erosion of relationships with consultants and other intermediaries
- Material obstacles in establishing new counterparty relationships
- An adverse impact on margin rates and other borrowings
- Negative impact on the stock price of publicly traded firms that are named
- Difficulties in staff recruitment and retention
