The Financial Conduct Authority will be providing greater detail on how its ‘name and shame’ proposals will work in practice this autumn.
In a speech at the AFME Annual European Compliance and Legal Conference, Therese Chambers, joint executive director of enforcement and market oversight, discussed how the regulator had analysed more than 130 responses to its consultation on the proposals.
In February the FCA published proposals to name firms under investigation at an earlier stage to increase transparency about its enforcement work and to deter wrongdoing.
Chambers said: “While consumer groups, whistleblowers and some other regulators welcomed the prospect of greater transparency, the companies we regulate were overwhelmingly against.
“So first, let me assure you all: we are listening. We have analysed each and every one of the more than 130 responses to our consultation. And we are not going to rush this.”
She also revealed the regulator would be publishing case studies examining how the criteria for naming firms might apply and what announcements could look like.
As well as more information on the number of cases that might be affected.
“We heard clearly the concern that firms felt they would not have sufficient time to make representations, and will respond to the constructive feedback we’ve received on this point.
“Allowing firms time to provide their views on whether, what and when we announce, will be part of any proposal we take forward. So I want to reassure everyone here today that we have heard the strength of feeling on this – from all sides – and that this is very much an ongoing conversation.
“Since the consultation closed in April, we have been reflecting on the range of serious concerns raised and working to build understanding. We do think the case for a degree more transparency remains strong. But it needs to be seen within the vital context of a focused number of cases likely to deliver the greatest deterrent, and delivered much faster,” Chambers added.
She said the FCA would be meeting with trade associations and firms to explore how to develop the proposals.
“We are not proposing moving from publicity in zero cases now, to 100 per cent of cases in the future. Rather, a case-by-case approach following assessment of clearly defined criteria - including consideration of the potential impact on the firm and market. But we heard loud and clear that the criteria we consulted on were too high level and lacked specificity,” Chambers explained.
She also said the FCA was looking to shorten the amount of time it took to close investigations but said the regulator would never “shy away” from challenging or complex investigations.
“We closed 60 operations in the financial year 2023/24, compared to 38 in the previous year, more than 25 per cent of these were less than two years old.
“And as I speak to you today, my team is actively negotiating settlements in cases where it has taken less than two years to complete the investigation.
