The UK’s Financial Conduct Authority had proposed a so-called “name and shame” approach that would have allowed it, subject to certain safeguards, to disclose its investigations into firms publicly at an early stage (see our earlier blog); however, following significant criticism from the financial industry and Parliament—largely highlighting risks that early disclosure could potentially cause irreversible damage to firms, including those later cleared of any wrongdoing—the FCA has abandoned the proposal.
It has, however, retained its existing ability to make a public announcement that it is or is not investigating a matter in “exceptional circumstances”. Existing guidance suggests that the FCA might, for example, do this where it needs to confirm that it is investigating something where there is public concern or speculation. It might also, exceptionally, publish details of an investigation’s findings if the fact of the investigation has become public and the FCA has found that the investigation was unwarranted.
The FCA had also sought to require financial services firms to collect and report diversity data, and set diversity and inclusion (D&I) targets, with a view to encouraging more inclusive workplaces. However, industry detractors argued that the FCA’s proposed mandatory D&I rules could become an onerous “tick-box” exercise. Instead, the FCA has reverted to its original position of encouraging financial institutions to adopt their own voluntary approaches to improving diversity.
Despite recent high-profile cases, and a Treasury Select Committee report titled “Sexism in the City” which found a “shocking” prevalence of sexual harassment and bullying in the financial services industry, the FCA has delayed until June 2025 the finalisation of new rules on non-financial misconduct that are expected to expand the extent to which non-financial misconduct may be relevant to compliance with FCA rules.
For further information, please see our corresponding alert.
