MFA submits comment letter to FCA on its publicising enforcement investigations consultation paper

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