The Financial Conduct Authority (FCA) has published a consultation paper FCA CP24/2 on proposals to increase transparency around enforcement and investigations.
It is proposing that it will announce publicly when it has opened an investigation, and give updates as it progresses. Under the plans the FCA will also be open about when cases have been closed with no enforcement outcome. Other proposed changes aim to simplify the FCA's Enforcement Guide.
Currently, the FCA only publishes information about its enforcement investigations when these lead to outcomes, i.e. when the FCA decides to issue statutory notices imposing sanctions, or which impose prohibitions and requirements. Only in exceptional circumstances has the FCA commented on the fact, or progress, of an investigation.
The FCA believes that more communication about investigations at an earlier stage will act as a deterrent and educate the market on the FCA's expectations of behaviour. The FCA has said that announcing an investigation does not mean that it has decided whether there has been misconduct or breaches of its requirements. Investigations into individuals will be treated differently and the FCA will not usually announce these types of investigations.
The consultation closes on 16 April 2024. Further details on the FCA's proposals are available on our FSR and Corporate Crime team's blog post.
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