Let’s not beat around the bush: the FCA just blinked.
In a quiet letter to the Treasury Select Committee, Britain’s top financial watchdog rolled back some of its biggest regulatory plans. “Name and shame” is out. Diversity and inclusion rules? Scrapped. Non-financial misconduct? Kicked down the road. If you were hoping for reform with bite, it looks like you’ll be waiting a little longer.
So what does this all mean—for consumers, advisers, and the future of trust in UK financial services?
Another Day, Another U-Turn
For months, the FCA had been talking tough. Public interest tests, more transparency, and holding firms to account sounded promising. But now? It’s back to “exceptional circumstances” when it comes to naming firms under investigation.
Translation: unless something truly outrageous happens, the public stays in the dark.
That’s not protection—it’s PR.
Yes, the FCA says it’s “speeding up investigations.” But speed means little without sunlight. Consumers deserve to know when something smells off. Otherwise, how can they make informed decisions?
The duration of Financial Conduct Authority (FCA) investigations varies significantly based on the complexity and specifics of each case. On average, investigations are completed within approximately 40 months. However, if a case progresses to the Regulatory Decisions Committee (RDC) or the Upper Tribunal, the duration can extend to around 64 months.
Diversity & Misconduct: Quietly Shelved
Let’s talk about those other proposals—the ones meant to clean up culture.
After consulting on new diversity and inclusion rules across the industry, the FCA and PRA now say: actually, never mind. Same story with non-financial misconduct. We’re told it’s still a priority… but also not quite ready.
This leaves a vacuum. And when regulators hesitate, bad behaviour festers.
For advisers who work hard to build inclusive practices and uphold high ethical standards, it feels like the goalposts just moved again. What message does that send?
Here We Go Again: The Regulation Rollercoaster
If this feels familiar, you’re not wrong.
Regulation in the UK runs in cycles—boom, bust, and back again. Just like JB Beckett warns, every time the City forgets the pain of the last crisis, the rules relax, the risks creep in, and the cycle resets. Deregulation might be dressed up as “growth,” but let’s not kid ourselves—it often opens the door to the same old problems.
And guess who gets hurt? Not the big firms. It’s the consumers. The honest advisers. The small businesses trying to do right by their clients.
Growth at What Cost?
The FCA says it’s aligning with future legislation. That’s shorthand for one thing: political pressure.
With the Treasury hungry for growth and private investment, regulators are being told to take the foot off the brake. Less red tape, more capital. Sounds good in theory. But who’s watching the gate?
If protecting consumers becomes optional, trust evaporates—and trust is the bedrock of any financial system.
What Should You Take Away?
Whether you’re a consumer, planner, or policymaker, here’s the reality: we’re entering another cycle of deregulation. That means more noise, less clarity—and more pressure on YOU to stay informed.
So:
- If you’re a consumer, stay sceptical. Ask questions. Don’t assume regulation has your back.
- If you’re an adviser, keep doing what you know is right. Lead with integrity—even when the rules don’t demand it.
- And if you’re in government, remember: sustainable growth doesn’t come from relaxing the rules. It comes from building systems people trust.
The FCA’s job isn’t to please the Treasury or appease the industry. It’s to protect the public. Let’s hope they remember that before the next blow-up hits the headlines.
💬 Over to You
What do you make of this shift? Progress, pragmatism—or just more smoke and mirrors?
Let me know your thoughts—and if you agree it’s time for the regulator to put the public back into “public interest.”
Academy of Life Planning 