At the end of January 2026, the FCA published its first Enforcement Watch newsletter (EW1) which looked at its (controversial) publicity policy, current enforcement case priorities and international partnership work in 2025.
Publicity policy
Following the significant criticism that the FCA's proposed publicity policy had faced, its updated policy (which came into force on 3 June 2025) represents a row back from its radical “name and shame” proposals. Under the revised approach, firms that are the subject of an enforcement investigation will only be named in exceptional circumstances and the bar for naming individuals is high. The FCA can also reactively announce investigations that are already public knowledge, announce investigations without identifying the specific firm or, where the activity is being carried out by unauthorised firms, may identify the firm if considered necessary to protect consumers.
Over a six-month period (between 3 June and 31 December 2025), the FCA opened 23 enforcement operations. It has proactively named one firm under the 'exceptional circumstances' test (a motor finance claims management company), and reactively confirmed investigations against three listed firms, following the firms themselves announcing the investigation. The FCA has also confirmed investigations into two insurers (in the home and travel markets) but has not named them.
Exceptional circumstances test
This test will be met if the FCA considers that it is desirable to:
- Maintain public confidence in the UK financial system or the market.
- Protect consumers or investors.
- Prevent widespread malpractice.
- Help the investigation itself. For example, by bringing forward witnesses.
- Maintain the smooth operation of the market.
When deciding whether to make a public announcement under this test, the FCA will also weigh potential prejudice to persons under investigation.
In deciding to announce the investigation against TCPA, a key reason was consumer protection, which the FCA considered outweighed the potential prejudice to the firm. TCPA challenged the FCA's decision through judicial review, however, this was dismissed by the High Court (with the Court of Appeal refusing permission to appeal).
Enforcement priorities
The FCA also discusses the wide number of focus areas for the 23 investigations which have been opened since June last year, including:
- Individual responsibility for regulatory failings
- Listed issuers (potential market disclosure issues)
- Unauthorised business (particularly in the cryptoasset sector)
- Fair value (six firms are being investigated regarding potential breaches of the Consumer Duty)
- Inadequate oversight of systems or reliance on third party providers that did not meet standards
- Adequacy of financial crime controls and
- Consumer investment and asset management (in respect of misleading consumers with false statements and failing to recognise conflicts of interest)
International partnership
The newsletter highlights the importance to the FCA of working closely with international partnership organisations. Notably, this includes the FCA’s membership of IOSCO with whom the regulator works on its cross-border investigations, particularly in respect of information gathering (having made 476 requests for information to IOSCO in 2025).
The FCA also worked with 8 other global regulators in June last year to tackle illegal financial promotions by rogue finfluencers, leading to three arrests, criminal proceedings against three individuals and 650 take down requests on social media platforms.
It's likely that we'll continue to see coordinated regulatory action across the globe in 2026.
For an idea of enforcement trends to watch this year, see our earlier post.
