The U.K. Financial Conduct Authority (FCA) released a revised version of its enforcement insurance guidelines, reducing the document by 250 pages through the removal of duplicate content and more concise formatting.
The changes reflect public and industry feedback gathered during consultations announced in late 2024.
The regulator adjusted its investigation publicity approach but chose not to adopt a proposed public interest framework. Instead, it retained the current policy that allows for public disclosure only under exceptional circumstances.
However, the revised guidance introduces three new conditions under which the FCA may announce an investigation.
- First, the FCA will disclose investigations involving suspected unauthorized financial services. This includes cases related to unapproved financial promotions or potential offenses in unregulated areas. The regulator may issue such announcements to protect consumers or attract witnesses.
- Second, the FCA will confirm an investigation if the subject company or its affiliates make the information public.
- Third, the FCA may issue anonymized disclosures, omitting the company’s name and investigation details.
The aim is to inform the public about enforcement activity patterns and promote regulatory compliance among firms.
It will do so if the facts are disclosed by a government authority, either in the U.K. or abroad. In both scenarios, the regulator may also release details about the nature of the case, provided this information is already in the public domain.
These revised guidelines apply only to investigations launched from June 3 onward. The FCA stated it would continue consultations for additional revisions.
In parallel with the policy updates, the regulator reported improvements in investigation timelines. Five recent cases were concluded in under 16 months, a significant reduction from the 42-month average reported during 2023 and early 2024.
