Laura WilesNikhil Rathi, FCA Chief Executive, delivered a speech on growth at the Annual City Banquet.
His speech highlighted the FCA’s literature review on links between financial regulation and growth and that it will shortly be launching a research competition to fill in the gaps on how the regulator can support capital formation, productivity gains and financial services exports. He also drew attention to the increasing digitalisation of the FCA’s systems, and its enforcement efforts. In particular, he highlighted record fraud prosecutions and charges, and falling investigation times.
Rathi also spoke on the FCA’s controversial consultation on transparency in enforcement cases, and the strength of opposition the proposals are facing. He noted that transparency would not be applicable in all cases, but “no longer just by exception”, and that a “degree more openness” could reduce harm, increase whistleblower confidence, and benefit rule-abiding firms. He also acknowledged the concern that the proposals could make the FCA an “international outlier” and undermine competitiveness, but stated that next month, the FCA would be publishing further data and case studies on how a public interest test might work in practice.
He noted that where the FCA decided to name a firm in the public interest, this would not be automatically when an investigation starts – on this, he drew attention to the fact that FCA enforcement investigations typically follow at least a year of supervisory engagement. To conclude, he stated that the FCA would continue to listen to feedback and the Board would issue a decision early in 2025.
The speech also covered the FCA’s enforcement efforts, advice guidance boundary review and improvements to digital infrastructure.