Context
The FCA has published the final version of its streamlined and updated Enforcement Guide and has confirmed its approach to enforcement transparency. The Policy Statement includes a Mapping Guide showing where content in the previous Guide can now be found in the new Guide or on the FCA’s website. The whole of the new Guide is also included in the Policy Statement.
Key points to note and next actions
The updated Enforcement Guide
- The updated Guide will be a more user-friendly document that benefits firms and consumers.
- The FCA has made other changes to the Enforcement Guide to streamline the content and reduce duplication, reducing it by over 250 pages.
- The FCA has also confirmed that it will continue to consult on future changes to the Enforcement Guide.
- The new Enforcement Guide came into force on 3 June.
Enforcement transparency changes
The FCA has retained the ‘exceptional circumstances’ test for announcing investigations into regulated and listed firms. In addition, it has identified three situations where there was broad support for increased transparency, which are set out in Chapter 4 of the Policy Statement:
- Where the FCA is investigating suspected unauthorised financial services, or a suspected offence relating to unregulated activity, and an announcement will warn consumers or investors or help the investigation.
- Where the fact of the investigation has been made public by the subject, an affiliated company or a regulatory body, government or public body.
- Anonymised announcements, not naming or identifying the subject of the investigation, where it would be helpful to educate people on the types of misconduct we are investigating.
These changes will only apply to investigations launched on or after 3 June 2025.
Given the specific legal considerations on sharing information about individuals, the FCA will not generally announce when it has opened an investigation into a named individual
In relation to other proposals and changes, the FCA includes information in relation to accepting reports on a limited waiver basis, the attendance of legal advisers at compelled interviews, reports on its investigations, the commencement of civil and criminal proceedings, scoping meetings, private warnings, and various proposals for amendment to the content of the guide.