Britain’s Financial Conduct Authority (FCA) asserted its commitment to accelerating the announcement of investigations, as revealed in a letter released on Friday, responding to concerns raised by the House of Lords committee.
The FCA’s decision to push forward with this initiative aims to enhance transparency within the financial sector.
The House of Lords’ Financial Services Regulation Committee had previously advised the FCA to temporarily halt these plans, citing potential adverse effects on companies unjustly implicated.
Currently, the FCA divulges details of investigations only after their conclusion, a practice it seeks to amend.
In the words of the FCA letter, “We will consider all responses very carefully and we plan a further round of discussion and engagement to ensure we have understood all points raised and to share our initial thinking.”
Furthermore, the FCA intends to collaborate more extensively with stakeholders to delineate the procedural intricacies and the criteria guiding announcements.
This move by the FCA unfolds against the backdrop of governmental efforts to bolster London’s status as a global financial hub, particularly in the wake of Brexit.
London now contends with rival financial centers in the EU and New York. Concerns linger among critics that the FCA’s proposed disclosure policy, often termed as “naming and shaming,” might deter foreign investment in Britain.
The FCA underlined its aspiration for UK markets to retain their competitiveness and expand based on principles of fairness, transparency, and integrity. Effective regulation, according to the FCA, constitutes a fundamental pillar supporting this endeavor.