The City watchdog is to give companies it is investigating an additional window to contest allegations as it seeks to defuse the months-long row over its so-called ‘name and shame’ proposals.
Sky News has learnt that the Financial Conduct Authority (FCA) plans to disclose on Thursday that it will allow the subjects of enforcement probes a 48-hour window to assess the contents of its announcements before they are made public.
Under the proposals, the FCA would give companies ten days’ notice that they were being investigated, at the end of which it could decide to proceed with the announcement, triggering the extra 48-hour window.
The revised plan represents a climbdown from the regulator after a fierce backlash from the City and politicians which started earlier this year.
Jeremy Hunt, the then chancellor, was among those who criticised the FCA’s stance.
In recent weeks, the watchdog’s chair, Ashley Alder, and chief executive Nikhil Rathi, have acknowledged flaws in the original plan and signalled that they would water it down.
They have argued that the principle of naming and shaming will act as an effective regulatory deterrent.
The Treasury and Sir Keir Starmer have put Britain’s economic regulators on notice that they need to adopt a pro-growth approach to their mandates.
Mr Rathi, who threw his hat into the ring for the soon-to-be-vacant cabinet secretary’s post, is expected to step down when his first five-year term expires next autumn.
The FCA declined to comment.