HoL Financial Services Regulation Committee criticises the FCA's updated proposals to publicising enforcement investigations
The House of Lords Financial Services Regulation Committee (FSRC) has published a statement and report into the Financial Conduct Authority's (FCA) proposals to change its approach to publicising enforcement investigations set out in FCA consultation paper CP24/2 and revised in November 2024. The report entitled ‘Naming and shaming: how not to regulate’, sets out the FSRC’s conclusions that the FCA has not made a convincing case for changing its current policy of announcing investigations only in 'exceptional circumstances' and calls on the FCA to further amend or withdraw the proposals. Key concerns include potential reputational damage to firms and the risk of the UK becoming an international outlier, indicating a failure to properly take into account the FCA’s competitiveness and growth objective. Although the FSRC welcomes the FCA’s willingness to revise its proposals to address some stakeholders concerns, it expresses ‘deep concern’ over inadequacies in the consultation process.