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The UK Financial Conduct Authority (FCA) has outlined significant changes to its enforcement rules, although it has stopped short of implementing some of the more controversial elements of its original proposal. 

The rules were outlined in a new  overhauling the regulator’s enforcement guide and its approach to publicising investigations, and came into force on June 3, 2025.

The changes are aimed at increasing transparency, improving consumer protection, and enhancing trust in the UK’s financial system.

“The UK has a globally competitive financial services sector which plays an important part in supporting economic growth,” the FCA said. 

“High standards of market integrity, underpinned by effective regulation and enforcement, are critical to that effort. Our enforcement work directly reduces the damage that fraud and financial crime cause to UK markets’ international reputation, growth and competitiveness.”

Handling publicity

The new policy follows two rounds of consultation under  and incorporates feedback from a wide range of stakeholders, including industry bodies, consumer groups, parliamentarians, and regulators. 

It represents a shift in how the FCA handles publicity around its enforcement work, particularly in relation to unauthorised activity and unregulated firms.

“Many respondents welcomed the prospect of us sharing more information about our enforcement investigations,” the FCA said. 

In particular, the regulator has talked up the prospect of showing that action is being taken against bad actors, as well as helping stamp out financial crime. 

The FCA did acknowledge the risk of “unintended consequences”, such as confusion, uncertainty, and damaging consumer confidence, that has concerned some financial players. 

However, under the revised approach, the regulator has retained the ability to name individuals or firms it is investigating for suspected unauthorised financial services. These include promoting financial products without the necessary approval or suspected offences linked to unregulated activities. 

The regulator may also confirm that an investigation is underway if that fact has already been made public by the subject, an affiliate, or another regulatory or public body. 

In addition, it can publicise investigations on an anonymised basis, particularly where doing so could serve an educational purpose or encourage compliance among other firms.

Despite these new powers, the FCA has decided not to proceed with a broader public interest framework that would have allowed it to name regulated firms more frequently.

Instead, the regulator will retain its current “exceptional circumstances” policy as the main test for deciding whether to publicise an investigation into a regulated firm.

Clarity on process

Alongside the updated publicity policy, the FCA has revised its  (ENFG) and  (DEPP). 

The ENFG has been streamlined to clarify how the regulator uses its powers in typical investigations and to remove unnecessary duplication. 

Changes to the DEPP include the deletion of repeated legislative text and the relocation of content not directly related to enforcement.

The FCA believes the updates will make its enforcement policy more accessible and easier to navigate for firms, advisers, and the public. 

Moving non-enforcement material to its website is also intended to improve access to relevant information.The new policy is designed to support the FCA’s strategic objectives, including maintaining the integrity of the UK’s financial markets and protecting consumers. 

By making certain types of investigations – particularly those involving unauthorised or unregulated activity – public earlier, the regulator aims to reduce harm, encourage witnesses to come forward, and provide more timely information to the public.

To measure the effectiveness of the changes, the FCA will track relevant data such as whistleblower reports, public confidence, and firm behaviour. 

It will also continue to engage with stakeholders and monitor feedback as it implements the revised policy.