FCA looks to expedite cases and improve transparency

The Financial Conduct Authority (FCA) announced plans to expedite and improve the transparency of its enforcement cases on Tuesday, in a bid to increase the deterrent effect of its actions.

It said it would prioritise a focussed portfolio of cases aligned with its strategic objectives going forward, adding that cases deemed unfeasible in delivering outcomes would be promptly closed.

In a significant departure from existing practices, it said it had also initiated a consultation on enhancing transparency surrounding the initiation and resolution of enforcement investigations.

Proposed measures included publishing updates on ongoing investigations, and openly disclosing cases concluded without enforcement outcomes.

Unlike the current norm, where investigations were seldom announced, the proposed framework was intended to broaden disclosure.

However, decisions to publicice investigations would be made on a case-by-case basis, considering factors such as safeguarding the integrity of the UK financial system, providing reassurance to the public, and aiding ongoing inquiries.

“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.

“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.

“Greater transparency will also drive greater accountability for us as an enforcement agency.”

Reporting by Josh White for Sharecast.com.