FCA drops plan to ‘name and shame’ more UK companies under investigation

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The British Financial Supervision Authority is scheduled to largely give up its controversial plan “to name more companies and disgrace”, which represents a major shift after the organizer faced increasing pressure to drop the policy.

On Wednesday, the Financial Conduct Authority plans to propose to implement a new public interest test on whether more companies will be discovered under investigation, according to the persons familiar with the matter. Instead, it is committed to testing the most striking “exceptional” circumstances.

It is a major reflection for the UK organizer, which sparked a great violent reaction from the city and criticism from government officials when it announced the plans in February 2024.

FCA CEO, Nakhil Rathi, has been criticized for a suggestion amid increasing concerns that the organizer’s proposals are leading business abroad at a time when the government is trying to enhance growth.

The government has prompted many organizers in the country to make more proposals supporting growth. On Tuesday, Sir Kerr Starmer said that immediately he decided to organize the payment systems by integrating it with FCA.

This comes weeks after the ministers removed the chair of competition and markets authority after he decided that he did not focus sufficiently on growth.

The U-Turn comes, despite the assurances from FCA, that it will apply the narrow parameters announced by investigations that are announced by assessing the impact on the auditing company.

In November, FCA responded to criticism of its proposals to unveil more companies that they are achieving by saying that they will make companies for 10 days instead of only one and take the impact on the company, its share price and its wider financial stability.

He also said that the new policy will only lead to another procedure or two investigations into organized companies that are detected every year, in addition to control or two already.

FCA organized an invitation on Tuesday with industry bodies to inform them of its plans and said that it would notify the Mukhtar Ministry of Treasury Committee in the House of Commons and the Committee for the Financial Services Regulatory of the Lunders Board of Directors in writing, according to the people who were informed of the conversation.

FCA rejected the comment.

The Lords Committee last month criticized the plan, describing it as a “wrong failure” in a FCA bruising episode. Lord Michael Forseth, the conservative president of the committee, said the organizer had failed to raise “this basic change.”

FCA will continue in plans to publicly naming the unorganized companies that they are achieving, which said there is widespread support in financial services, as well as to confirm investigations if they are already disclosed by other public bodies.

The senior FCA officials previously said they want to be able to nominate companies that are investigated to prevent further damage to customers during the continuation of the investigation, as happened in cases such as the British pension scandal.

Two -thirds of the FCA investigations have ended without any enforcement procedure, which raises fears that it may harm the reputation of companies by revealing their identity even if the investigation has not found any violations.

But the organizers sought to raise the necessary tape to open the investigation. Since April 2023, the number of FCA’s open investigations has decreased by 35 percent, while none of them have been closed since then without taking more measures.