Tales of the unexpected

In classic screwball comedy movies, the plot twists come thick and fast, the dialogue is rapid-fire, and the audience is transfixed as the protagonists stumble from one incident to the next. This week saw the UK’s FCA at the centre of the drama, with announcements coming thick and fast.

City wins: FCA backs down on controversial “name and shame” plans

For some time the regulator had been saying it was ready to "name and shame" companies under investigation, a bold move that had the City clutching its pearls. But then came a dramatic U-turn! The public interest test? Scrapped. The "exceptional circumstances" test? Back in vogue, like a vintage hat suddenly deemed fashionable again.

Then, just as we were catching our breath, the FCA revealed it was hitting pause on its diversity and inclusion policies, a move that left many perplexed. Was this a case of mistaken identity, a plot device to create dramatic tension? No, it was simply a matter of aligning with the "evolving legislative landscape," or so the FCA said.

And just when we thought we’d witnessed the last of the twists and turns, the FCA announced it was absorbing the Payment Systems Regulator. It was a shotgun wedding of regulatory bodies, a sudden and unexpected merger that left onlookers wondering if they'd missed a crucial plot point.

Suspending the FCPA will complicate global anti-corruption work

There has been no shortage of plot twists, new narratives and general dramas in the US – and these invariably have an impact beyond the world’s largest economy. Our regular columnist and seasoned anti-corruption investigator Tony McClements took a look at the global impact of the US government’s decision to suspend the Foreign and Corrupt Practices Act.

He says: “In a world that operates and does business in US dollars, the UK and European states will have had an eye on the FCPA when drafting their own legislation,” and he worries that “European investigators who have always enjoyed a positive working relationship with their American counterparts will now see that relationship suffer.”

OPINION: Change to SEC Enforcement Director’s authority could affect pace, scope of investigations

Our US content manager Julie DiMauro also expressed concern about the impact of a rule change that went largely unnoticed but could prove to be a major plot twist. It seems the SEC’s Director of Enforcement must now seek approval before issuing formal orders of investigations. “For the industry,” she says, “this means that investigations may now be far more targeted to the Trump administration’s and SEC’s broader enforcement agenda and less broadly shaped than those previously brought by career SEC staff who likely had a less narrowly focused agenda.”

The events which took place this week serve as a reminder that even in the sober and considered world of financial regulation, the unexpected can happen.

Until next week,

Martin Cloake & Jean Hurley