The FCA – Financial Conduct Authority – has decided to scrap plans to name and shame businesses which are in the process of being investigated, following somewhat of an uproar from various figures within government and across the industry.
What Was the Proposal?
In 2024, the FCA announced that it would make public the names of any institutions or businesses which were being investigated. Their reasoning was that it would act as a strong deterrent to other institutions that were not adhering to the FCA’s strict set of regulations, which govern the UK’s financial markets.
A Negative Reaction
However, individuals and organisations from across the financial services sector and even the government expressed their disappointment with these proposals. Indeed, the proposal was even described as being a failure by the House of Lords Financial Regulation Committee. The FCA did indeed seem to recognise that their proposal had not been popular, and in a statement released in March 2025 they refer to the ‘lack of consensus’ across the industry as being one of their main reasons not to continue with the proposal, according to the FCA’s website.
Standards and Regulations
The FCA exists primarily to ensure a fair and transparent financial services market for all, for the benefit of both consumers and institutions. People considering a start-up or those who work in an FCA regulated institution may be unsure of all of the guidelines which affect them. FCA compliance consultants such as https://www.adempi.co.uk/ can provide tailored expert advice in any matters relating to FCA compliance.
For now, it seems that the FCA will continue any investigations behind closed doors and will not be adopting a policy of publicly announcing names of businesses under scrutiny.
The FCA continues apace with its strategy of supporting the UK government in reducing the burden on small businesses by ensuring that their regulations are clear and transparent for all, thus removing some of the perceived red tape in setting up businesses. The scrapping of this policy will surely go another step towards increasing public confidence in this matter.
Summary
This article reports the FCA scrapped plans to publicly name businesses under investigation, after criticism from government and industry figures, including the House of Lords Financial Regulation Committee. It explains the original proposal was meant to deter non-compliant institutions, that the FCA cited a ‘lack of consensus’ for dropping it, and that investigations will instead continue privately, with a focus on clear, transparent rules.
Questions this article raises
- What specifically drove the House of Lords committee’s criticism of the proposal?
- Could the FCA revisit a naming policy again in future?
- How does the FCA’s approach compare with other countries’ financial regulators?
