FCA enforcement powers and the risk of public naming

Caroline Black, Consultant at Gherson Solicitors LLP, has been quoted in a recent legal analysis exploring how the UK regulator may increasingly use publicity as part of its enforcement toolkit.

The article considers a recent High Court judgment which has clarified how the FCA may rely on “exceptional circumstances” where there is concern about misleading financial promotions or the potential for significant consumer harm. Legal commentators suggest this signals a more assertive regulatory stance, particularly in cases involving widespread marketing activity.

Caroline Black notes that sectors likely to face increased scrutiny include crypto-asset businesses, products marketed on the basis of environmental, social and governance (ESG) credentials, and claims management companies operating high-impact consumer campaigns. Where firms operate in a manner similar to those examined in the judgment, public naming may increasingly form part of the FCA’s response.

The article also places this development in the wider context of the FCA’s consumer protection objectives and its increasing willingness to use enforcement publicity as a regulatory tool, particularly where there is a risk of widespread consumer detriment.

Read more in the article: FCA Kickstarts New “Name and Shame” Enforcement Tactic, originally published by Law360.