The Financial Conduct Authority (FCA) has revised its approach to publicising investigations, allowing firms a 10-day window to object before their cases are disclosed.
The regulator also stated it will weigh whether early disclosure could undermine public confidence in the financial system.
Announcing the softened stance on Thursday, the FCA acknowledged that only a limited number of additional investigations will be made public each year.
The changes follow industry and political pushback against the regulator’s original proposals, unveiled earlier this year.
The FCA’s initial plan aimed to name firms under investigation at an earlier stage, mirroring practices in other regulated sectors such as energy. The regulator argued this would enhance transparency, encourage witnesses to come forward, and strengthen deterrence.
Currently, the FCA only identifies firms once investigations are concluded and penalties are imposed.
However, the proposals sparked concern, with lobby groups such as TheCityUK warning that the move could harm the UK’s reputation as a global financial hub.
Former Chancellor Jeremy Hunt criticised the original plan, citing risks to market integrity and disproportionate impacts on share prices. He argued that it conflicted with the FCA’s new mandate to support the UK economy, a priority also highlighted by current Chancellor Rachel Reeves.
In its latest consultation paper, the FCA acknowledged the feedback, saying, “Our proposals came as a surprise, and we should have introduced them in a better way. The core aim of serving the public interest in a small number of cases became obscured.”
TheCityUK Chief Executive Miles Celic welcomed some adjustments but noted key concerns remained, including the absence of a cost-benefit analysis.
“Ultimately, the FCA’s approach would leave the UK as a global outlier,” Celic warned, pledging ongoing dialogue with the regulator.
Therese Chambers, the FCA’s joint executive director of enforcement and market oversight, said, “We have heard the strength of feedback to our original proposals, and we are making changes as a result.”
UK Finance also endorsed the revised approach. “We support the FCA’s aim of greater transparency but had concerns about the initial proposal,” said CEO David Postings.
The FCA’s move marks a balancing act between improving accountability and maintaining market stability, as it responds to industry concerns while pursuing its regulatory objectives.
