Previously, warnings were only made after the regulator had decided to take action.
The regulator said before making its final decision on any warning, it will consult the person or firm under investigation and assess any evidence that publication would be unfair.
A published warning notice statement will ordinarily include a brief summary of the facts behind the warning notice to enable consumers, firms and market users to understand the nature of our concerns, said the FCA.
Following consultation on the issue, the FCA said earlier warnings will better protect consumers and the integrity of the UK’s financial system by giving clear examples of unacceptable behaviour.
Director of enforcement, Tracey McDermott said: “It is clear that the more transparent and open that we can make the regulatory process, the more confidence we can give people that we are acting in their best interest.”
Sue Lewis, consumer panel chair, said: “Today’s announcement is welcome. Consumers need to be given information at the earliest opportunity so they can make informed decisions about which firms to do business with. Knowing that a firm is being investigated for misconduct is an important part of this.
“The position of financial services has been completely out of synch with public opinion. In the legal system alleged criminals are routinely named when charged with serious offences. Why should it be any different in the case of financial services?”
