It plans to focus on a streamlined portfolio of cases where it can deliver the greatest impact. 

The FCA also committed to more quickly closing cases where no clear outcome is achievable. 

It has begun a consultation on plans to be more transparent when an enforcement investigation is opened.

Details have been published today in a new Consultation Paper: CP24/2 - 'Our Enforcement Guide and publicising enforcement investigations - a new approach.'

Under the plans the FCA will publish updates on ongoing investigations and be open about when cases have been closed with no enforcement outcome. 

The moves are a change to the current process where current investigations are only announced in very limited circumstances. 

Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said: “By being more transparent when we open and close cases we can enhance public confidence by showing that we are on the case.”

She said the regulator will, “amplify the deterrent impact of our work” by helping firms to understand the types of serious failings that can lead to an investigation.

She said that this should help them to change their own behaviour more quickly.

Greater transparency will also drive greater accountability for the FCA as an enforcement agency, she added.

Steve Smart, FCA joint executive director enforcement and market oversight, said: “By delivering faster, targeted and transparent enforcement, we will reduce harm and deter others. We will also make greater use of our intervention powers to stop harm in real time." 

Any decision to announce an investigation would be taken on a case-by-case basis and depend on a variety of factors which will indicate whether to do so is in the public interest, the FCA said.

These include whether the announcement will protect and enhance the integrity of the UK financial system, reassure the public the FCA is taking appropriate action or assist in any investigations.   

Announcing an investigation does not mean that the FCA has decided whether there has been misconduct or breaches of its requirements, it said. Investigations into individuals will be different and the FCA will not usually announce these types of investigations. 

Financial Planning Today Analysis: Many will welcome this move by the FCA to provide better clarity and more updates on ongoing investigations. It can often taken many months or even years before the FCA publishes details of investigations, often at the end of a lengthy disciplinary or appeals process. Keeping people better updated on live investigations will help protect consumers better when potential breaches or FCA rules are spotted. Alerting consumers to issues could well save money from being ripped off. All this will, of course, depend on how this change is implemented. The FCA will need to keep to its word to demonstrate that it plans a step change in its policy. There will also need to be safeguards to ensure that those accused of wrongdoing are not wrongly tarnished when investigations find they are, ultimately, innocent.