FCA softens enforcement approach following backlash

In February, the FCA revealed plans to overhaul its enforcement policy, which included ramping up the speed of its investigations and disclosing the identity of firms under investigation, in a bid to deter other industry participants from making similar mistakes and to bolster the public's confidence in the watchdog's tenacity. However, industry professionals lambasted the plans, warning it could lead to heavy outflows from smaller firms and shareholder volatility among larger firms on the back of being publicly named in an ongoing investigation prior to a conclusion being reached. Fo...