On Mar. 12, UK FCA said will not take forward name and shame plans.
FCA published a letter to UKP Treasury Select Committee stating that it will not take forward proposal to shift to public interest test for announcing investigations into firms.
And that, with UK PRA, will not continue with proposed rules and expectations aimed at improving diversity and inclusion in regulated firms, after feedback to consultation.
Follows UKP Feb. 2025 issued report on FCA's enforcement proposals, see #243018.
Enforcement Proposals
Letter to Committee notes significant improvement in pace of FCA investigations and response to second phase consultation on plans for more transparent enforcement.
Consultation closed on Feb. 17, 2025, FCA has rapidly worked through feedback.
Consumers, whistleblowing groups generally supported greater transparency, industry remains largely opposed to certain aspects, specifically publicising an investigation into a regulated firm carrying out authorized activity when a public interest test is met.
Given lack of consensus, FCA will not proceed with this, stick to existing exceptional circumstances test to determine if it should publicise investigations into firms.
Does plan to proceed with other aspects of proposals, where there is broad support.
Reactively confirming investigations already in the public domain; public notifications which focus on potentially unlawful activities of unregulated firms and regulated firms operating outside regulatory perimeter; issuing more details of cases anonymously.
FCA will issue final policy statement by end Jun. 2025 and update Enforcement Guide.
Diversity and Inclusion
In 2023, FCA, UK PRA consulted in parallel on proposed rules and expectations aimed at improving diversity and inclusion in regulated firms, have considered feedback.
In last Parliament, Treasury Committee stated that regulators have a role to play on this issue, and the vast majority of respondents to the consultation agreed with this.
However, Committee recommended FCA should not proceed with its proposals on data collection, regulator also recognizes there is active policy/legislative agenda in area.
Many respondents to the FCA's consultation wanted the regulator to align its regulatory approach with such initiatives, in order to avoid duplication and unnecessary costs.
FCA therefore does not currently plan to publish new rules on diversity and inclusion, and it will continue to support voluntary industry initiatives.
Other Issues
FCA tells Committee that it continues to prioritize its work to tackle non-financial misconduct, but it is important that approach is proportionate and aligned with planned legislation, so is taking time to get this right, will set out next steps by end Jun. 2025.
FCA has previously said it will work with PRA to review impact of removing the bonus cap on gender pay and inequality, given the time it will take for firms to make changes, it will assess whether it will do this work in the 2026/2027 financial year.
