Investor Event

FCA Consultation on Enforcement Practice & Transparency

ShareSoc and UKSA respond to FCA Consultation “CP24/2: Our Enforcement Guide and publicising enforcement investigations – a new approach”.

We are delighted that after many years of lobbying by ShareSoc and others, the FCA is bringing forward proposals to improve their enforcement process by increasing transparency and naming firms under investigation

A primary operational objective of the FCA is to protect consumers of financial services, including our members, from bad conduct.

Investor confidence in the current regulatory regime is very low. Individuals who report concerns to the FCA receive no feedback at all, other than an initial acknowledgement, and are therefore unaware if or how their complaint is being addressed. This leads to a lack of confidence and trust in the regulator.

ShareSoc and UKSA raised this issue with the FCA in 2018. Our suggestion at the time was that the regulator should publicly state its commitment to firm, fast and transparent action, and should introduce two categories of censure: private concern and public concern.

Greater transparency surrounding enforcement actions is essential and is welcomed eagerly by ShareSoc and its members. The FCA must be seen to have teeth, and enforcement must be timely and transparent. Too many times we see bad actors get away with malpractice, if not outright fraud, especially in the AIM market.

We note with concern the intense lobbying by the financial services industry against these proposals. (see, for example: https://www.cityam.com/why-city-of-london-firms-are-plotting-a-revolt-against-the-fca/). We encourage investors to write to the FCA in support of their proposals, to counteract this lobbying.

Our full response to the consultation can be read here.

2 Comments
  1. David Owen says:

    Excellent choice of subject matter ShareSoc / UKSA. We, your area groups very seriously hope that this time (after many years of FCA / FSCS / Ombudsmen / Regulators, – indifference) after many years of ShareSoc / UKSA efforts being ignored, hopefully through serious support from us UK groups, we can all bring sufficient pressure on the “Authorities” to at least harvest the “low hanging fruit”. Being small shareholders cash exploitation by evidenced perpetrators, Corporate or individual. Particularly as FCA, FSCS, LSE, UK Law, have existing regulatory frameworks which include “avoidance of compliance” through the very complexity and “catch all” wording, terminology and principles of “Financial Intention”. An example of the current FCA indifference is the LSE “National Storage Facility” which is so difficult and complicated to use that we small investors cannot afford the time to decipher how to quickly use it ! so we don’t ! We at Worcs Group look forwards to a visit from our senior expert(s) to enhance our learning of this traumatic subject.

  2. David Owen says:

    Further comment folks ! our publishing of this opposition ……
    [“We note with concern the intense lobbying by the financial services industry against these proposals. (see, for example: https://www.cityam.com/why-city-of-london-firms-are-plotting-a-revolt-against-the-fca/). We encourage investors to write to the FCA in support of their proposals, to counteract this lobbying”]. …….
    is an excellent demonstration by our organisation that we are prepared to support FCA in their determination to continue the naming & shaming of perpetrators. The Media is doing a good job with evidence.
    WE SAID .. “However, the measures have triggered a backlash from both financial services firms and Westminster, with Chancellor Jeremy Hunt launching an extraordinary call for the regulator to “re-look” at the plans earlier this week”. ………
    FCA SAID .. “It’s about shining a spotlight on a case in a way that will deter others, raise standards, reassure consumers, counter ill-founded speculation that is damaging to firms or a sector, or encourage people to come forward with evidence and intelligence.” ………….
    THERE IS OUR INVITATION SHARESOC MEMBERS – MANY OF US HAVE EVIDENCE AND / OR, KNOW WHERE TO FIND IT !! ………. lets start with the big 4 !! .. The Media is doing a good job with evidence.
    AND WE SAY : read carefully the words written by Lord Forsyth of Drumlean, chair of the Financial Services Regulation Committee, he said. “This isn’t acceptable,” (that the FCA CEO has not appeared before his committee)
    AND WE SAY : ……… “Both government and top City groups have voiced concerns that the plans could hammer the UK’s appeal as a place to do business and contradict the FCA’s secondary objective to boost the “growth and competitiveness” of the UK”. …………..
    is filibustering and deflecting the purpose of FCA intentions on a grand scale.
    AND CityUK chief Miles Celic said: “The industry is opposed to the FCA’s proposal to name and shame financial services firms before the conclusion of enforcement investigations”.
    AND WE SAY : ……… FCA is only threatening evidenced wrongdoing, not speculation ! these wrongdoers individual or corporate must be sanctioned in some way, when evidence is produced and verified, if we start with the BIG 4 we won’t have to struggle to find evidence, globally.
    AND FINALLY : with AI, CryptoCurrency, Cash stopped, Cyber attacks, Corporate communication meetings held over “wotsapp” then deleted, …….. this may be the best & last opportunity Investors will ever have to fully support FCA and CityUK chief Miles Celic to protect Investors from deliberate evidenced malpractice.

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