Foot Anstey contributes to the House of Lords’ Regulation Committee inquiry into the FCA’s ‘name and shame’ proposals

National law firm Foot Anstey has provided insight in response to the House of Lords' Regulation Committee inquiry on proposed changes to the Financial Conduct Authority (FCA) enforcement approach, including plans to publicly name organisations under FCA investigation.

Foot Anstey's response to the inquiry, which examines the potential implications of the 'name and shame' proposals, has been quoted by the House of Lords' Regulation Committee in its report alongside contributions from other leading organisations, industry bodies and law firms.

If implemented, the changes would allow the FCA to disclose the names of firms under investigation together with certain details of alleged breaches.

Sonya Zywko, Partner at Foot Anstey, provided input on behalf of the firm, assessing the potential impact of the proposals. The House of Lords' Regulation Committee report urges the FCA to revisit key aspects of the proposals, including questioning whether they are proportionate or necessary. The timing of the report is significant, just before the FCA's second consultation closes on 17 February 2025.

Sonya commented: "We welcome the opportunity to contribute to the House of Lords' Regulation Committee inquiry and help shape a fair and effective approach. These proposals mark a significant shift in the FCA’s enforcement strategy. While transparency is key to maintaining public trust, it’s crucial to carefully balance this with the rights of firms under investigation. More could be done by the FCA, including to articulate why existing powers are not sufficient, why the change of approach is necessary and how the public interest test would work in practice.  This is important because the proposal to name firms at such an early stage risks serious reputational damage, unwelcome press speculation, and could crystallise litigation risk prematurely. There is a case here for dropping the proposals in their entirety."

The House of Lords' Regulation Committee inquiry report is available on the government's website. The FCA's first and second consultations are available on the FCA's website.

For further insights into the consultation and its implications, read Foot Anstey’s Enforcement Watch briefings.