The UK’s Financial Conduct Authority (FCA) has abandoned its controversial proposal to publicly announce investigations into firms and individuals, after facing significant industry opposition. The regulator had pitched the ‘name and shame’ approach as a way to increase enforcement transparency, but critics argued it could unfairly damage reputations before any wrongdoing was proven.
In a letter to the Treasury Select Committee, the FCA said it will instead proceed with other transparency proposals that received broader support, such as confirming investigations announced by others and publishing more details on issues under investigation anonymously. The regulator highlighted that it has already made significant improvements to its enforcement work, with recent investigations closing in under 16 months compared to an average of 42 months previously.
The reversal represents a setback for the FCA’s efforts to take a tougher stance on misconduct. However, the regulator emphasized it will continue tackling non-financial misconduct like harassment and plans to outline next steps by June 2025. The decision underscores the delicate balance regulators must strike between transparency and fairness in enforcement actions.
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