The city’s watchdog is to give the companies it investigates an additional window to challenge the allegations, as it seeks to defuse the months-long row over its so-called “name and shame” proposals.
Sky News has learned that the Financial Conduct Authority (FCA) plans to reveal on Thursday that it will give those under investigation 48 hours to assess the content of its announcements before they are made public.
Under the proposals, the FCA would give firms ten days’ notice when they were under investigation, after which it could decide whether to proceed with the announcement, thereby triggering the additional 48-hour window.
The revised plan represents a step back by the regulator after a backlash from the city and politicians that began earlier this year.
Jeremy Hunt, then chancellor, was among those critical of the FCA’s position.
In recent weeks, the watchdog’s chairman, Ashley Alder, and chief executive Nikhil Rathi have acknowledged flaws in the original plan and indicated they would water it down.
They argued that the principle of naming and shaming would act as an effective regulatory deterrent.
The Treasury and Sir Keir Starmer have warned Britain’s economic regulators that they must take a pro-growth approach within their mandates.
Mr. Rathi, who ran for the soon-to-be vacant cabinet secretary post, is expected to resign when his first five-year term expires next fall.
The FCA declined to comment.