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The British financial guard will largely give up his controversial plan to name and shake more companies that examines it and marks a large turning turn after the supervisory authority was exposed to increasing pressure to fall the directive.
The Financial Conduct Authority plans to apply for a new one on Wednesday Test for public interest According to people who are familiar with the matter, it was falsified whether more companies should be disclosed. Instead, it adheres to its existing stricter “extraordinary circumstances” test.
For the British supervisory authority, it is a significant reversal that explained a large counter reaction from the city and the criticism of the government officials when it announced the plans in February 2024.
Nikhil Rathi, Managing Director of FCA, is under fire because the regulatory authority’s proposals are available Driving ride abroad At a time when the government tries to increase growth.
The government has urged many of the country’s supervisory authorities to submit more proposal proposals. Sir Keir Starrer said on Tuesday that he had decided Ax the payment system regulator By merging with the FCA.
That comes weeks after the ministers pushed out The chairman of the competition and market authority after deciding that he did not focus on growth.
The U -turn comes Despite assurances From the FCA that it would apply tight parameters to which examinations they would announce by examining the effects on the company.
In November, the FCA reacted to the criticism of its proposals to reveal more of the companies that examined them by taking into account the companies instead of a 10 -day announcement instead of only one, the effects on a company, its share price and the broader financial stability.
It also means that the new guideline would only lead to one or two investigations to regulate companies that are revealed every year, in addition to one or two that are already.
The FCA organized a call with industrial remions on Tuesday to inform them about their plans, and said that it would notify the financial selection committee of House of Commons and the financial services committee from House of Lords in writing.
The FCA rejected a statement.
The Lords Committee beat the plan last month and described it in a bruising episode for the FCA as a “bitter failure”. Lord Michael Forsyth, a conservative chairman of the committee, said that the supervisory authority had not managed to “change such a fundamental change”.
The FCA continues with plans to publicly name non -regulated companies for which it is examined, for which there was a broad support for financial services, and to confirm investigations if they have already been announced by other public bodies, the persons familiar with the matter said.
High-ranking FCA officials have previously announced that they are named companies that are examined to prevent customers from causing more damage to the probe, while the probe still has passed tips in cases such as the false sales scandal of British Steel Pension.
Two thirds of the FCA investigations have ended without enforcement measures, which pronounces that this could damage the reputation of companies by disclosing their identity, even if the probe found no misconduct.
However, the supervisory authorities have tried to increase the bar that is necessary to create an examination. Since April 2023, the number of open studies has decreased by 35 percent, while none of the opening has been opened by the opened since then without further measures.
