The FCA has confirmed it is standing by its hotly debated proposal to “name and shame” firms under investigation. 

Therese Chambers, the FCA’s Executive Director of Enforcement, said in a speech this week¹ that the regulator “think the case for a degree more transparency remains strong”, whilst acknowledging that the proposal had become a “lightning rod”.  

We wrote about the "naming and shaming" proposal which was included in a consultation launched by the FCA in February 2024. The current position is that the FCA will not disclose live enforcement investigations to the public other than in exceptional circumstances. The proposal is the FCA will publish information about the opening, and subsequent progress of investigations into firms, if it decides that such publication is in the public interest. The question of whether to publish will be decided on a case-by-case basis.

Since the launch of the consultation there has been an unprecedented and almost universal backlash against the proposal – not only from firms regulated by the FCA but also from lawmakers and the government in the form of a statement from the then Chancellor of the Exchequer, Jeremy Hunt, and the House of Lords, which wrote to the Chief Executive of the FCA to express its concerns and launched its own call for evidence on the proposals. We discussed this united front of opposition in our June podcast on the proposals. 

Despite the reservations of those who engaged in the consultation, the FCA is persevering with its proposed amendments to publicity in the context of live investigations. Ms Chambers was keen to emphasise the depth of feeling expressed has been taken on board by the FCA, stating that the regulator is listening and won’t be “rushing into any decisions”. Ms Chambers mentioned in particular that feedback received in relation to what is perceived to be an overly short time frame (one day) for firms to respond to a publication proposal is being taken into account.

As it goes into listening mode, the FCA has promised to “intensify” its engagement with trade associations and firms over the autumn, including by providing greater detail on how the plans will work in practice through publishing case studies examining how the criteria might apply.

Ms Chambers concluded her speech with an assurance that the FCA is mindful of all its stated objectives, including supporting the international competitiveness of the UK’s financial services and the growth of the UK economy. This was surely a response to Jeremy Hunt’s concern that the proposal was not consistent with the FCA’s growth duty, and to the many respondents who had voiced the worry that the plans would make the UK regulator an international outlier, harming competitiveness in the sector.

¹ Speech delivered at the AFME Annual European Compliance and Legal Conference.