"We would, under our proposals, consider all relevant factors when weighing up whether or how an investigation interacts with the public interest test and... will additionally consider likely impact on the relevant firm and senior individuals."
In response to the letter from the trade associations, the FCA said: "We are consulting on proposals help promote transparency about our enforcement work bringing confidence to both markets and consumers and improving accountability.
"The plans sit within a wider range of work which is designed to ensure that any enforcement action we take is timely, focused and delivers impactful deterrence.
"We welcome all feedback and will continue our engagement with the industry, government, parliamentary committees and other stakeholders, even after the formal consultation has closed to ensure we are striking the right balance on these important issues."
Bim Afolami, economic secretary to the Treasury said: "This is a matter for the FCA, who have led this work independently of HM Treasury. However, we are engaging with both the FCA and industry as the proposals are developed, in particular to ensure that any potential impacts on competitiveness are properly considered.”
Liz Field, chief executive of Pimfa, one of the letter's signatories, said: “It is very difficult to see how the FCA’s proposals to publicise enforcement investigations will be of benefit to either consumer confidence and trust in financial services or to the integrity of the market overall.
“The FCA’s argument that an enforcement investigation does not automatically mean that there has been misconduct or breaches of its requirements seem to us to show a degree of naivety around the way the real-world works.
"An announcement of an investigation will lead many to believe there is no smoke without fire and assume guilt on the part of the firm being investigated, particularly if this is fuelled by press speculation."
The consultation closes tomorrow (April 30).
melanie.tringham@ft.com
