FCA responds to HoL Financial Services Regulation Committee criticism on updated proposals to publicising enforcement investigations

Article summary

The House of Lords Financial Services Regulation Committee (FSRC) has published a letter addressed to its chair, Rt Hon. the Lord Forsyth of Drumlean, from the chief executive of Financial Conduct Authority (FCA), Nikhil Rathi. The letter provides an update on the FCA's work regarding the transparency of enforcement investigations, following the publication of FCA consultation paper CP24/2 and a report from the Committee. Rathi highlights the FCA's improved efficiency in closing investigations and a significant reduction in the number of open operations. He also discussed the FCA’s proposals for increased transparency to serve the public interest, which were initially set out following a recommendation by the Public Accounts Committee, but after receiving concerns from industry groups and governments, the FCA revised these proposals for further consultation, ultimately deciding not to publicise investigations into regulated firms unless exceptional circumstances arise due to a lack of consensus.