Overview

Private warnings, have, in the past, been important regulatory tools used by the FCA. They have been used by the FCA in order to achieve its regulatory objectives under the Financial Services and Markets Act 2000 (FSMA 2000) of market confidence, financial stability, the protection of consumers and the reduction of financial crime.

The FCA’s February 2024, consultation paper CP24/2 proposes the FCA delete its policy on private warnings, set out in the FCA’s Enforcement Guide (EG) EG 7.6, and not use private warnings as an alternative to formal enforcement action. This follows the FCA’s 2017 announcement of its intention to consult on its use of private warnings in light of its efforts to improve transparency;