Financial Services Regulatory Enforcement mini-series, season 2, episode 3: The FCA Strikes Back

Ashurst Legal Outlook Podcast

Last year, financial services firms were left reeling by the Financial Conduct Authority (FCA)'s transparency proposals (aka "naming and shaming" firms that are under investigation). Since then, the proposals have been amended by way of a second consultation. In today’s episode, we explain what’s changed, what’s been clarified, and what all this could mean for regulated firms and individuals.

In the latest episode of our continuing mini-series on financial services regulation, we explain the latest developments on the FCA’s controversial proposals on transparency and public announcements during investigations.

Host Nathan Willmott is joined by Ashurst colleagues Eleanor Robinson and Adam Jamieson to summarise what has changed in the draft transparency proposals; the most important being the change to the public interest test (which now states that the FCA must consider the impact on the firm of any announcement as part of the public interest test); and the increased period of notice that firms can expect of publication (from 1 business day to 10) . They also probe some of the case study examples provided by theFCA.

While the FCA anticipates there will be very few cases each year, Adam points out that this policy “might be enforced for decades and [FCA] strategy will change, cases will change, personnel at the FCA will change – all factors that could influence the number of investigations and therefore the impact of this type of policy”. And irrespective of how many firms are affected, Adam adds that “if you are one of the firms who does get named … it’s going to be your business [and reputation] that gets harmed”.

As well as discussing the implications for firms under investigation and what the new case studies do (and don’t) clarify, our expert panel reflects on the political heat this policy has generated and whether that could yet scupper the proposals before they comes into being. Following the current consultation period, the FCA intends to make a decision by the end of March 2025.

To hear this (and to subscribe to future episodes in season two of our enforcement mini-series) search for “Ashurst Legal Outlook” on Apple Podcasts, Spotify, or your preferred podcast player. And to find out more about the full range of Ashurst podcasts, visit ashurst.com/podcasts.

The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Listeners should take legal advice before applying it to specific issues or transactions.

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