We discussed in an earlier blog that the United Kingdom's Financial Conduct Authority has axed proposed "name and shame" rules, retaining only an ability to make a public announcement about an investigation in "exceptional circumstances". It has now published a revised Enforcement Guide which also details three specific circumstances in which it may make an announcement:
- Naming the subjects of investigations in limited
circumstances
The FCA may now name individuals or firms under investigation for unauthorised business or related criminal offences. This will only occur when publicity helps to protect consumers or supports the investigation–such as by alerting potential victims or encouraging whistleblowers.
- Reactively confirming the subject and nature of an
investigation
If an investigation has already become public through other sources–like a firm's own disclosure, press coverage, or another regulator–the FCA may confirm its involvement.
- Anonymised announcements
The FCA may issue anonymised announcements about investigations if it believes doing so could serve an educational purpose or deter wider misconduct. These would not name the subject but would aim to send clear compliance messages to the market.
By preserving confidentiality except in defined, limited situations, the new policy attempts to balance transparency and pursuit of the FCA's regulatory objectives with fairness and a desire not to cause potentially unwarranted damage to a firm's reputation and business.
For further information, please see our corresponding alert.
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