The Financial Conduct Authority (FCA) has provided an update on its enforcement transparency proposals, confirming that it will not proceed with plans to change the way it publicises investigations into regulated firms.
Instead, the regulator will focus on measures that have wider industry support, including confirming existing investigations that are already public knowledge, increasing transparency around unregulated firms operating outside regulatory perimeters, and publishing anonymous details of issues under investigation.
NO CHANGES TO PUBLIC INTEREST TEST
Following extensive engagement, the FCA has decided to maintain the current exceptional circumstances test for announcing investigations into regulated firms, rather than shifting to a public interest test as originally proposed.
Nikhil Rathi, CEO of the FCA, said: “We are speeding up our enforcement work. On our enforcement transparency proposals, we have always aimed to build a broad consensus.
“Considerable concerns remain about our proposal to change the way we publicise investigations into regulated firms, so we will stick to publicising in exceptional circumstances as we do today.
“We will implement changes which have commanded wider support and which we believe will help support our efforts to protect consumers from harm.”
The FCA plans to publish its final policy on enforcement transparency by the end of June 2025.
FCA AND PRA PAUSE DIVERSITY AND INCLUSION REFORMS
In a joint update, the FCA and Prudential Regulation Authority (PRA) announced that they will not move forward with proposed diversity and inclusion (D&I) regulations for financial services firms at this time.
The decision follows a broad range of feedback from the industry, as well as anticipated legislative developments that could impact regulatory expectations. The regulators stated that their aim is to avoid placing additional burdens on firms while waiting for a clearer legislative landscape.
FURTHER REVIEW ON NON-FINANCIAL MISCONDUCT RULES
The FCA has also reiterated its commitment to addressing non-financial misconduct, including issues such as workplace harassment, discrimination, and bullying within regulated firms. However, the regulator acknowledged the need to align its approach with upcoming legislation, and will take additional time to finalise its policy.
A further update on next steps regarding non-financial misconduct regulation is expected by the end of June 2025.
