“Reducing and preventing serious harm is a cornerstone of our strategy. By delivering faster, targeted and transparent enforcement, we will reduce harm and deter others. We will also make greater use of our intervention powers to stop harm in real time.”
The Financial Conduct Authority (FCA) has announced its plan to expedite enforcement cases as part of an effort to enhance the deterrent effect of its actions.
The UK financial watchdog wants to concentrate on a selected portfolio of cases that align with its strategic priorities and promise the most significant impact. It also aims to close cases more quickly when it becomes clear that no outcome is achievable.
Consultation on plans to increase transparency
In a significant shift from its current practice, the FCA is initiating a consultation on plans to increase transparency during enforcement investigations. This includes publishing updates on investigations and being open about cases closed without enforcement action. This approach marks a departure from the existing procedure, where investigations are disclosed in very limited situations.
The FCA clarified that the decision to announce an investigation will be made on a case-by-case basis, considering a variety of factors to determine if doing so is in the public interest. These factors include the potential to protect and enhance the integrity of the UK financial system, reassure the public of the FCA’s actions, or aid in investigations.
However, announcing an investigation does not imply that the FCA has concluded misconduct or breaches of its requirements have occurred, especially in investigations concerning individuals, which are generally not announced.
Reducing and preventing serious harm
Therese Chambers, joint Executive Director of Enforcement and Market Oversight at the FCA, said: “By being more transparent when we open and close cases we can enhance public confidence by showing that we are on the case. At the same time, we will amplify the deterrent impact of our work by enabling firms to understand the types of serious failings that can lead to an investigation, helping them to change their own behaviour more quickly. Greater transparency will also drive greater accountability for us as an enforcement agency.”
Steve Smart, joint Executive Director Enforcement and Market Oversight, added: “Reducing and preventing serious harm is a cornerstone of our strategy. By delivering faster, targeted and transparent enforcement, we will reduce harm and deter others. We will also make greater use of our intervention powers to stop harm in real time.”
