FCA responds to enforcement policy criticism

The House of Lords Financial Services Regulation Committee has published the FCA’s response to its report on the contentious enforcement proposals. Of course, the content has largely been superseded by the FCA announcement of the final changes, but some of the response is nonetheless interesting. Specifically, that the FCA was pleased with the support it had for the suggestions of reactively confirming investigations when announced by others, announcing investigations into potential unauthorised activity and providing greater anonymised updates.

The response also comments on the Committee’s criticism that the FCA did not engage early or transparently enough about its plans. The FCA acknowledges it could and should have done better, but noted that some of the comments were unfounded – for instance it says it could not have included the consultation in the Regulatory Initiatives Grid before it was launched!

Finally, the FCA confirmed it is in constant contact with HM Treasury, and said that by improving the pace and impact of its enforcement investigations, it will be helping to support growth and competitiveness of the sector.