In the buildup to his appointment as chief executive of the Financial Conduct Authority (FCA) in 2020, Nikhil Rathi voiced his aspiration for the regulator to adopt a “stronger, prompter approach to enforcement”. This stance has been echoed in the followings years. The goal of the FCA under Rathi’s stewardship is to take on “fewer, faster Enforcement investigations”, a point Rathi highlighted during his address to a gathering of senior financiers at the annual City Dinner as recently as October 2023.
The refined direction under Rathi’s leadership marks a change in the regulator’s approach. Rather than being merely reactive in its enforcement, the FCA seems to be taking on a more preventative role, becoming what could be called a “New City Bobby.” As the reshape of the FCA’s strategic approach unfolds, it impacts the way corporates and individuals interact with the regulator and face potential regulatory intervention. Legal professionals, especially those working in firms and corporations that frequently interface with the FCA, need to pay close attention to this shifting landscape.
It is always vital to approach potential regulatory issues with a proactive mindset, augmented by a deep understanding of the regulatory context. Thus, staying informed of changes in the FCA’s enforcement approach can be invaluable for your company’s compliance efforts, and more broadly its relationship with the industry regulator.
For legal professionals interested in a deeper dive into this topic, the full article by WilmerHale, originally published on JD Supra, provides further context and discussion on the proactive FCA Supervision and Enforcement under Nikhil Rathi’s leadership. You can access the article here.