UK Financial behavior authority (FCA) Published The last revisions of their enforcement guide on Tuesday after a consultation on proposed measures to streamline the guide and increase openness.
The updated enforcement guide’s main height is that FCA has formally maintained the existing “exceptional circumstances” test to announce investigations on regulated and listed companies while adding three new conditions under which investigations will be announced.
During existing “exceptional circumstances” testFCA is considering a public announcement of an investigation that is desirable if it will maintain public confidence in the financial system or market, protect consumers or investors, prevent widespread malpractice, help the investigation itself, for example by bringing in witnesses or maintaining the smooth operation of the market.
In its final update, published on June 3, FCA identified three more situations, or “circumstances”, where “there was broad support for increased openness”:
- The first one was there, in an investigation of suspected unauthorized financial services or crimes relating to unregulated activityAn announcement would help warn consumers and/or help in the investigation;
- The other concerns cases where the investigation has been publicly revealed by the subject or a connected unit, regulatory body, government or public body;
- The last new situation relates to “anonymized announcements”, which do not name or identify the subject of the investigation, which can help to educate the public about misunderstandings investigated by FCA.
According to the controller, this updated guide will help it achieve “greater openness” in its enforcement investigations and provide Companies and consumers with a more user -friendly document.
“We will continue to improve the pace and focus of our investigations, which increases the effects of our work in favor of consumers and markets, and therefore the broader economy,” mentioned FCA.
It added that the updated enforcement guide, including the three new exceptional circumstances, will only apply to investigations that were started on June 3.
Who it affects and what it means for digital assets
The FCA’s policy statement and revised enforcement guide is relevant to all companies under the supervisory authority’s monitoring, including those approved by or registered with FCA, those who conduct designated activities and relevant securities publishers.
Currently this does not apply to the majority of Digital access Companies operating in the UK, as the sector remains largely unregulated in the country. However, this can soon change.
In recent months, the UK and FCA have up the work pace Against a digital asset rules that they hope to complete later this year.
Although the details of the framework are not yet clear, it is almost certain that the vast majority of digital asset space, including exchanges, retailers and agents, will fall under FCA’s jurisdiction, with the possible exception from ‘Systemic Stablecoins‘Which is likely to fall under the Prudential Regulation Authority, the UK’s banking and insurance sector regulator.
This means that in 2026, FCA’s enforcement guide and its exceptional circumstances for announcing investigations will be extremely relevant to most digital asset companies operating in the country.
Consultation
FCA first published its enforcement guide in 2007. Since then it has grown considerably, with the controller that consulted on proposed measures to update and streamline the guide February 2024 and November 2024.
The consultation included proposals for a new investigation policy to provide a “measured increase in transparency” under a new “general interest” test.
Following a significant criticism of the proposed test for general interest – even if he is called “name and shame” policy – from industry participants and legislators, FCA decided to adhere to the exceptional circumstance test while adding a few more circumstances to the list.
With regard to the next step, FCA said it would continue to monitor relevant information and feedback from stakeholders while assessing the impact of the revised enforcement guide, including on the public and industry’s confidence in its enforcement work.
Watch: Richard Baker on Engineering a smarter financial world with blockchain
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