The FCA has announced that it has dropped its proposals to disclose investigations it initiates before any findings of misconduct have been made.
The FCA originally proposed in consultation paper CP24/2, published in February 2024, that it would announce publicly when it opens an investigation and give updates as it progresses. It followed that up with a further consultation paper (CP24/2, Part 2) where it put forward modified proposals in an attempt to address some of the significant concerns that were raised by industry, government and other stakeholders in relation to the original consultation.
It now says that it will not proceed with the proposals to announce investigations, but it does plan to proceed with certain other changes (for which it says there was more support) including:
- reactively confirming investigations which are officially announced by others. Currently, even when an FCA investigation has been made or becomes publicly known – for example through an announcement by another body – the FCA is generally not able to confirm or deny its existence; and
- publishing greater detail of issues under investigation on an anonymous basis, to help highlight more quickly significant areas of concern.
For more information, see this post on our FSR and Corporate Crime Notes blog.
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