The UK Financial Conduct Authority (FCA) says that going forward, it will strive to provide more transparency in enforcement cases. At the same time, enforcement cases are expected to be resolved more rapidly. For cases where “no outcomes are achievable,” these will be closed more quickly.
The regulator states that it wants to “increase the deterrent impact of its enforcement actions. ”
Under the new plans, the FCA states that it will publish updates on investigations as appropriate and be open about when cases have been closed with no enforcement outcome. Currently, enforcement actions are only publicly announced in “very limited circumstances.”
The moves are a step change from the current process, where investigations are only announced in very limited circumstances.
Therese Chambers, joint Executive Director of Enforcement and Market Oversight at the FCA, explained that being more transparent will improve public confidence in their actions. At the same time, being more transparent in the acknowledgment of enforcement actions will act as a deterrent to other potential scofflaws.
Chambers’ coworker, Steve Smart, joint Executive Director of Enforcement and Market Oversight, added:
“Reducing and preventing serious harm is a cornerstone of our strategy. 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 UK is a principles-based regulator, unlike the Securities and Exchange Commission in the US. The fact the FCA will reveal when enforcement actions do not move forward is different from the US, where dropped cases are not typically announced.
