In an effort to improve regulatory discipline, the U.K.’s Financial Conduct Authority (FCA) is planning to speed up enforcement and be more upfront about enforcement activities.
The FCA is proposing to revamp its approach to investigating and disciplining misconduct by both processing enforcement cases more quickly and enhancing transparency about this work, including announcing the existence, and status of, regulatory investigations.
To accelerate enforcement, the regulator plans to focus its efforts on a narrower set of cases that are more closely aligned with its priorities, so that enforcement “can deliver the greatest impact.”
It also plans to close more quickly cases that aren’t going anywhere.
“Reducing and preventing serious harm is a cornerstone of our strategy,” said Steve Smart, joint executive director of enforcement and market oversight with the FCA, in a release. “By delivering faster, targeted and transparent enforcement, we will reduce harm and deter others. We will also make greater use of our intervention powers to stop harm in real time.”
The regulator also plans to become more open about the existence of enforcement investigations and the status of those inquiries.
To that end, it’s now consulting on plans to publish updates on investigations, and to be open about when cases have been closed without discipline.
“Transparency about what we are investigating further helps to reassure, educate and drive our own accountability,” the consultation noted. “That is why we’re proposing to communicate more about our investigations.”
The FCA said that, under the proposed new approach, the decision to announce an investigation would be taken on a case-by-case basis, depending on whether it’s determined to be in the public interest.
The factors that will be considered include “whether the announcement will protect and enhance the integrity of the U.K. financial system, reassure the public the FCA is taking appropriate action, or assist in any investigations,” the FCA said.
“By being more transparent when we open and close cases, we can enhance public confidence by showing that we are on the case,” said Therese Chambers, joint executive director of enforcement and market oversight with the FCA, in a release.
“At the same time, we will amplify the deterrent impact of our work by enabling firms to understand the types of serious failings that can lead to an investigation, helping them to change their own behaviour more quickly,” she said. “Greater transparency will also drive greater accountability for us as an enforcement agency.”
The deadline for providing feedback on the consultation is April 16.