FCA consultation on publicising investigations: Talks to resume

After a few months of silence (the FCA’s promise to listen to the “extensive feedback” it had received at the consultation’s close in April 2024, swiftly being followed by the May announcement of the General Election), Therese Chambers yesterday announced an Autumnal “intensification” of FCA engagement in relation to its deeply unpopular proposals to publicise its investigations. 

The speech emphasised recent successes in levying fines and conducting criminal proceedings, as well as “significant advances” in the pace of conducting (and concluding) investigations, but noted a continued desire for “appropriate openness” in relation to investigations, to: (1) give consumers information for “decision-making”; (2) highlight concerning conduct to the market; and (3) assure whistleblowers/other interested parties of the steps being taken.

Despite the promised “intensification” of engagement on these proposals, the speech:

• unqualifiedly acknowledged the “overwhelming” opposition to, and “serious concerns” about, the proposals from those regulated by the FCA; 
• repeatedly emphasised the lack of “rush”; 
• admitted that the proposed public interest test was “too high level and lacked specificity” and that any further test will include “consideration of the potential impact on the firm and market”;  
• decried any “blanket” policy of publicity (in contrast perhaps to initial descriptions in the Consultation Paper of a new “principle of a presumption of transparency”); and 
• promised to provide some worked examples of the proposals (including “case studies examining how the criteria might apply and what announcements could look like”).

Strikingly, the speech ended by emphasising that the FCA is mindful of all of its objectives, including “supporting the international competitiveness of the UK’s financial services and the medium to long term growth of the economy”, which will be welcome to all those concerned about how the proposals aid the FCA with meeting its important secondary objective.

Whether those with fundamental concerns in principle to the FCA’s proposal to publicise investigations as a deterrent can be reassured by further discussions, however, remains to be seen. What is clear is that the conversation will now continue for some time, likely both through official/usual channels and, as we saw earlier in the year, through the press, with City minister Tulip Siddiq recently reported to be no keener on the proposals – which she notably says that she will further consider when the FCA “report[s] back” before she “make[s] a decision” – than her Conservative predecessors (Minister urges UK financial regulator to rethink ‘naming and shaming’ plan).

Next steps

• Friday, 11 October 2024: The Financial Services Regulation Committee’s renewed call for evidence on the FCA’s proposals closes.
• Later this Autumn: The FCA will provide further detail on how its proposals could work in practice.