The regulator's CEO, Nikhil Rathi, appeared before the House of Commons Treasury Select Committee today (Wednesday).
FCA receives approximately 650 letters yearly from Members of Parliament inquiring about ongoing investigations.
The Financial Conduct Authority (FCA) has cited heightened interest from Members of Parliament in specific cases as one of the main reasons for proposing disclosure of ongoing investigations. The regulator
mentioned that it receives approximately 650 letters of inquiry yearly. FCA's CEO, Nikhil Rathi, and Board Chair Ashley Alder appeared before the House of Commons Treasury Select Committee today (Wednesday) to defend the proposed policy.
A Blow to London's Financial Hub?
The regulator was responding to concerns regarding the
potential adverse impacts on both firms and individuals named in
investigations, especially those later cleared. Among other reasons, the FCA highlighted the impact on whistleblower confidence as
a reason to publish ongoing probes.
The FCA disclosed that as of March 31, 2024, there
were 500 ongoing investigations involving 336 individuals and 164 firms. While
the exact number of investigations launched annually remains unspecified, the authority highlighted insights into the outcomes of closed investigations.
Acknowledging concerns over the duration and volume of
investigations, the FCA outlined plans to streamline its investigative
portfolio. This involves enhancing coordination between its authorization,
supervision, and enforcement teams to expedite processes aligning with
strategic priorities.
In response to queries about appeal mechanisms and
thematic disclosure, the FCA maintained its stance, opting against an appeal
mechanism and expressing reservations about the efficacy of thematic disclosure.
Besides that, the FCA downplayed the potential impact of the policy on firms, citing
their familiarity with enforcement actions and disclosure requirements. It
emphasized the limited number of investigations relative to regulated firms, mitigating significant market repercussions. Regarding a query as to
whether the FCA had compared the practice to that of counterparts globally, the agency underscored
the challenge of differing cultural norms and regulatory approaches across
jurisdictions.
Reputation and Market Ramifications
While the FCA contends that its disclosure proposals
align with public interest tests and do not undermine the principle of
"innocent until proven guilty," the debate underscores the delicate
balance between transparency, accountability, and the potential impact on firms and individuals involved.
In February, the FCA announced that it was planning to disclose more information about its ongoing investigations into companies much
earlier than before to enhance market transparency. This move, reminiscent of
practices by its counterpart, the US Securities and Exchange Commission (SEC),
marked a pivotal shift in the UK's regulatory landscape.
Under the forthcoming strategy, the FCA intends to adopt a proactive stance by publicly
naming companies under formal investigation as soon as probes commence. This
approach aims to encourage witnesses and whistleblowers to step forward and deter misconduct within the financial industry.
However, while transparency is crucial, many stakeholders contend that the proposed approach is excessive. Instead, they advocate for
improving investigative processes and reducing decision-making timelines. With 65% of FCA investigations ending without action, there are
concerns about the needless reputational harm caused by public disclosures.
Calls for a more nuanced approach have emerged,
suggesting that the FCA should only name companies in exceptional
circumstances. In March, Kemi Badenoch, the Business
Secretary and Equalities Minister, accused the FCA of "regulatory
over-reach" in an official letter. In 2023, the FCA issued a record 2,286
scam alerts on its public Warning List, an improvement of 21% from the 1,882
alerts issued in 2022.
The Financial Conduct Authority (FCA) has cited heightened interest from Members of Parliament in specific cases as one of the main reasons for proposing disclosure of ongoing investigations. The regulator
mentioned that it receives approximately 650 letters of inquiry yearly. FCA's CEO, Nikhil Rathi, and Board Chair Ashley Alder appeared before the House of Commons Treasury Select Committee today (Wednesday) to defend the proposed policy.
A Blow to London's Financial Hub?
The regulator was responding to concerns regarding the
potential adverse impacts on both firms and individuals named in
investigations, especially those later cleared. Among other reasons, the FCA highlighted the impact on whistleblower confidence as
a reason to publish ongoing probes.
The FCA disclosed that as of March 31, 2024, there
were 500 ongoing investigations involving 336 individuals and 164 firms. While
the exact number of investigations launched annually remains unspecified, the authority highlighted insights into the outcomes of closed investigations.
Acknowledging concerns over the duration and volume of
investigations, the FCA outlined plans to streamline its investigative
portfolio. This involves enhancing coordination between its authorization,
supervision, and enforcement teams to expedite processes aligning with
strategic priorities.
In response to queries about appeal mechanisms and
thematic disclosure, the FCA maintained its stance, opting against an appeal
mechanism and expressing reservations about the efficacy of thematic disclosure.
Besides that, the FCA downplayed the potential impact of the policy on firms, citing
their familiarity with enforcement actions and disclosure requirements. It
emphasized the limited number of investigations relative to regulated firms, mitigating significant market repercussions. Regarding a query as to
whether the FCA had compared the practice to that of counterparts globally, the agency underscored
the challenge of differing cultural norms and regulatory approaches across
jurisdictions.
Reputation and Market Ramifications
While the FCA contends that its disclosure proposals
align with public interest tests and do not undermine the principle of
"innocent until proven guilty," the debate underscores the delicate
balance between transparency, accountability, and the potential impact on firms and individuals involved.
In February, the FCA announced that it was planning to disclose more information about its ongoing investigations into companies much
earlier than before to enhance market transparency. This move, reminiscent of
practices by its counterpart, the US Securities and Exchange Commission (SEC),
marked a pivotal shift in the UK's regulatory landscape.
Under the forthcoming strategy, the FCA intends to adopt a proactive stance by publicly
naming companies under formal investigation as soon as probes commence. This
approach aims to encourage witnesses and whistleblowers to step forward and deter misconduct within the financial industry.
However, while transparency is crucial, many stakeholders contend that the proposed approach is excessive. Instead, they advocate for
improving investigative processes and reducing decision-making timelines. With 65% of FCA investigations ending without action, there are
concerns about the needless reputational harm caused by public disclosures.
Calls for a more nuanced approach have emerged,
suggesting that the FCA should only name companies in exceptional
circumstances. In March, Kemi Badenoch, the Business
Secretary and Equalities Minister, accused the FCA of "regulatory
over-reach" in an official letter. In 2023, the FCA issued a record 2,286
scam alerts on its public Warning List, an improvement of 21% from the 1,882
alerts issued in 2022.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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🐦 Twitter: https://twitter.com/F_M_events
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!