Our response to FCA CP24/2 ‘Our Enforcement Guide and publicising enforcement investigations – a new approach’
TheCityUK acknowledges the importance of enforcement in the FCA's role of consumer protection, but questions the efficacy of the proposals in CP24/2 in advancing this objective.
The proposals do not support the FCA's primary goals of protecting the financial system's integrity and promoting effective competition.
The proposals are not proportionate and do not align with the FCA’s new secondary objective concerning international competitiveness, diverging from approaches in other leading financial centres.
Implementation risks damaging the UK’s international competitiveness and diminishing its appeal as a business and investment destination, which could stifle industry growth and the broader economy.
The proposals could harm businesses under investigation, who are entitled to the presumption of innocence, without demonstrating clear, outweighing benefits.
A stronger deterrent effect could be achieved by the FCA announcing investigations into specific misconduct types without naming firms or individuals.
