City Minister Tulip Siddiq has urged the Financial Conduct Authority (FCA) to reconsider its “name and shame” policy for firms under investigation. Speaking at the Labour Party conference, Siddiq said she has met with the FCA multiple times to discuss their plans before making a final decision on whether to allow them to proceed.
“I didn’t think it was great the way it was done. I’ll decide after the next meeting,” she said.
This comes after UK Finance and other lobby groups warned that the approach could harm financial stability. Siddiq’s stance mirrors that of former Chancellor Jeremy Hunt, who opposed the FCA’s plans, arguing they could undermine the regulator’s independence.
The FCA has clarified that it would only name firms where there is clear public interest. Therese Chambers, the FCA’s executive director of enforcement, acknowledged the City’s concerns and reassured attendees at an Association for Financial Markets in Europe (AFME) event.
“We have heard strong concerns from all sides and will continue the conversation,” said Chambers. She emphasized the need for greater transparency but insisted the focus would remain on cases with the most deterrent effect. The FCA will engage with stakeholders to refine its approach and ensure it aligns with the best interests of UK consumers and markets.
Siddiq also highlighted fintech company Revolut for its efforts in economic crime research, which has helped shape her views on the topic.
Revolut, which received a UK banking license in July, has faced criticism following a rise in fraud and scam complaints. However, CEO Francesca Carlesi stressed that compliance is critical to the company’s growth strategy, with nearly 4,000 employees dedicated to compliance.
The FCA had previously investigated Revolut in 2016 over money-laundering concerns, but the case was closed in 2017.
