FCA to Give Companies Extra 48 Hours in 'Name and Shame' Compromise

The Financial Conduct Authority (FCA) is set to introduce a compromise in its controversial "name and shame" policy by providing companies under investigation an additional 48 hours to review and contest proposed announcements before they are made public.

This adjustment aims to address the backlash the regulator has faced from businesses and politicians.

Under the revised approach, the FCA will notify companies 10 days in advance of an investigation announcement.

After this period, the companies will then have another two days to assess the announcement’s content before its publication.

The policy revision marks a significant shift for the FCA, which has defended the naming-and-shaming principle as a deterrent to regulatory breaches.

However, the initial proposal drew criticism, including from former Chancellor Jeremy Hunt and City stakeholders, prompting the FCA to reconsider its stance.

FCA leadership, including chair Ashley Alder and chief executive Nikhil Rathi, has acknowledged the flaws in the original plan and emphasized the need for a balanced approach.

Meanwhile, economic regulators in the UK have faced increasing pressure from both the Treasury and Labour leader Sir Keir Starmer to prioritise pro-growth strategies.

Rathi, whose current five-year term ends next autumn, is expected to step down and has expressed interest in the cabinet secretary role that will soon become vacant.
Source: Sky news