FCA scraps 'name and shame' enforcement plan and stalls on D&I

In two major volte-faces, the FCA has dropped its intention to publish names of firms under investigation and has delayed its programme on diversity and inclusion (D&I). The first proposal had already been considerably watered down after meeting with sustained industry opposition. The second was set as one of chief executive Nikhil Rathi's priorities when he joined in 2020. The Prudential Regulation Authority is also understood to be delaying its D&I plans.

By Neasa MacErlean

The two announcements were made in a letter to Dame Meg Hiller MP, chair of the Treasury Select Committee. Rathi justified the change by pointing to "the lack of consensus" among firms, explaining that the current situation will prevail. The Financial Conduct Authority will "stick to publicising in exceptional circumstances as we do today", rather than introducing a public interest test. However, some non-controversial moves were confirmed in the letter. There will be reactive confirmation of investigations which are "officially announced by others"; public notifications regarding unregulated organisations; and "greater detail of issues under investigation on an anonymous basis", possibly through the Enforcement Watch bulletin.