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The UK Financial Conduct Authority’s (FCA) attempt to increase the transparency of its enforcement investigations could also speed up investigations, which experts say would be good news for the financial services sector. 

The updated approach, outlined in a  that took effect on June 3, 2025, aims to bolster trust in the financial system, reinforce consumer protections, and enhance market integrity. 

Following two consultation rounds – with the longer process triggered by a backlash to the original proposals to name and shame companies – the FCA has now effectively overhauled its enforcement guide and clarified its approach to publicising investigations. 

The changes focus particularly on tackling unauthorised financial activity and misconduct by unregulated firms. 

Under the new framework, the FCA can publicly name individuals or firms suspected of unauthorised activity and confirm investigations that have already been made public by others. It can also publish anonymised updates to promote compliance and consumer awareness. 

However, it has decided not to adopt a broader public interest test for naming regulated firms, sticking instead to its existing “exceptional circumstances” policy.

“The FCA’s updated Enforcement Guide signals a subtle shift towards greater transparency in unregulated activity investigations, including the use of anonymised announcements to educate the market,” said Lisa McKinnon-Lower, partner at Spencer West. 

“While the ‘exceptional circumstances’ threshold remains for regulated firms, the changes suggest a more proactive and faster-moving enforcement strategy.”

Speed and clarity

Jon Wilkins, partner, white collar and financial crime at Reeds Solicitors, said that “firms and individuals regulated by the FCA in the UK will welcome the change in the Policy Statement recently announced”. 

“If followed correctly, the Policy Statement will increase the transparency of enforcement proceedings taken against individuals within the highly regulated financial services sector across the UK,” he added.

However, Wilkins cautioned that it remains to be seen how the proposed ‘increased transparency’ manifests itself where the criminal activity is alleged, particularly where other agencies such as the Serious Fraud Office and City of London Police might jointly be involved in a criminal investigation. 

Among other changes, the FCA also looks set to speed up enforcement work, having streamlined its Enforcement Guide (ENFG) and Decision Procedure and Penalties Manual (DEPP) to remove duplication and improve clarity. 

The reforms are intended to make enforcement processes more accessible for firms, advisers, and the public. 

By publicising certain investigations earlier, the FCA hopes to reduce harm, encourage witnesses to come forward, and provide timely information to consumers. 

“For far too long, firms or individuals who are the subject of enforcement investigations have experienced significant and protracted delays in receiving the FCA’s outcome and have received a lack of information from the FCA during the investigative process,” said Wilkins. 

“Time will tell whether this change in direction by the FCA will be effective in reducing delays in enforcement investigations and increasing the transparency of the investigative process.”