Will enforcement "transparency" achieve the FCA's aims?

The regulator's proposals to publish more information about enforcement investigations into firms at an early stage, as well as slash back the Enforcement Guide, have caused consternation in the industry. Michael Tan and Jack Moore unpack the logic behind these moves and articulate concerns about possible effects.

Michael Tan (michael.tan@hsf.com) and Jack Moore (jack.moore@hsf.com) are senior associates with Herbert Smith Freehills in London, specialising in financial services regulation. Jenny Stainsby (jenny.stainsby@hsf.com) is a partner and global head of Financial Services Regulatory for the firm, while partners Hywel Jenkins (hywel.jenkins@hsf.com), Chris Ninan (chris.ninan@hsf.com) and Jon Ford (jon.ford@hsf.com) represent clients in contentious financial services regulatory matters.

On 27 February 2024, the Financial Conduct Authority published CP24/2'Our Enforcement Guide and publicising enforcement investigations - a new approach',which sets out a proposal that would see the regulator publicly announce the opening and progress of investigations, and other proposed changes to simplify the FCA's Enforcement Guide (EG). [1]