The regulator will maintain its current policy of only publicising investigations in “exceptional circumstances”, a major U-turn from its initial plans to apply a new “public interest” test.

This decision comes after widespread criticism, including from a House of Lords committee, which warned that early announcements could damage the reputations of firms ultimately found to have done no wrong. FCA chief executive, Nikhil Rathi, acknowledged “considerable concerns” and stated the regulator would instead focus on changes with broader support, aimed at protecting consumers.

The FCA will proceed with plans to: reactively confirm investigations already public, publicise unlawful activities of unregulated firms, and publish anonymised details of ongoing investigations. A final policy is expected by the end of June.

Furthermore, the FCA has decided against implementing new diversity and inclusion rules and targets, citing the need to avoid additional burdens on firms. However, it will continue to prioritise work on non-financial misconduct, ensuring its approach aligns with planned legislation.