We have considered carefully the responses and other feedback to our original proposals, and we now propose 4 significant changes to our initial proposals in CP24/2.
In February 2024, we consulted[2] on changes to our Enforcement Guide and bringing an increased focus, pace and transparency in our investigations.
In response to feedback, we publish this further consultation including these significant changes to initial proposals:
We are now proposing that the impact of an announcement on the relevant firm would form part of our public interest test and be central to our consideration of whether to announce an investigation and name the firm.
We are now suggesting giving firms 10 business days' notice of an announcement, with a further 2 days' notice if, following this, we decide to go ahead and announce. This is instead of the originally proposed 1 day’s notice to give firms more time to make representations. This would also give firms time to consider whether they wish (or need) to make an announcement themselves or make representations as to how and when that could be done.
We propose that the potential for an announcement to seriously disrupt public confidence in the financial system or the market should be a new factor in the public interest test.
We will not make proactive announcements of investigations that are on-going when the proposals come into effect, although we may reactively confirm on-going investigations that are already in the public domain, where this confirmation is in the public interest.
Who this is for
This further consultation is likely to be of interest to:
firms that fall within our regulatory oversight and who may be subject to an enforcement investigation, whether authorised or registered with us or who will be carrying out designated activities, as well as individuals working in these firms
consumer and investor groups and individual consumers and investors
industry groups, trade bodies, experts and commentators, and
other regulatory bodies
Next steps
We welcome continued feedback on our proposals and views in response to the further detail this paper includes.
