In Regulatory Wrap for the week to October 11, Jay Hampshire reflects on the FCA’s approach to enforcement as detailed in a recent speech.
In this Regulatory Wrap, we explore a speech from the FCA’s Therese Chambers, which referenced “kaizen” – a Japanese philosophy of continuous improvement – to demonstrate the regulator’s evolving approach to enforcement, such as with its “name and shame” proposal.
1. Chambers highlights that the FCA is “not shying away from tough conversations,” proved by its “name and shame” proposals
2. The idea behind the “name and shame” proposals is increasing transparency by announcing investigations as to deter misconduct, though these plans were highly divisive
3. Chamber acknowledged this and that the regulator is listening by explaining that there would not be a drastic change of anonymity to full disclosure of every firm involved in an investigation
4. The FCA plans to continue “intensifying engagement” with firms as to provide more detail on what investigation announcements could look like and the number of cases that could be affected
5. Firms should continue to watch this space to determine if the regulator is taking concerns into consideration while making changes – or if future announcements will just be “name and shame” by another name
This episode is brought to you by our Senior Content Writer, Jay Hampshire.
In reflection of the FCA’s transforming approach to enforcement, firms will need to remain vigilant in ensuring their conformity to compliance regulations, or possibly risk falling under an unwanted spotlight.
