See more This is Money on Google - save us as a Preferred SourceBy PATRICK TOOHER, CONSULTANT CITY EDITOR Updated: 18:06 BST, 21 June 2026
The City watchdog has slashed the number of secret investigations it carries out on financial firms despite taking on sweeping powers to protect customers and prevent scandals, The Mail on Sunday can reveal.The news comes as the Financial Conduct Authority (FCA) comes under mounting pressure from ministers to adopt a more light-touch approach to regulation to boost anaemic growth.Rachel Reeves has claimed that onerous rules and red tape are ‘a boot on the neck’ of businesses that risked ‘choking off’ innovation without bold reforms.The Chancellor’s comments earned a rare rebuke from Bank of England Governor Andrew Bailey, who warned against stripping back regulation too far.But the FCA’s latest figures show the number of deep-dive investigations into regulated firms fell to 31 in the year to March, the lowest in eight years.The figure was 83 two years ago when new consumer duty rules to shield the public were introduced, prompting claims that the FCA’s function was being ‘quietly run down’. Reduced: The City watchdog has slashed the number of secret investigations it carries out on financial firms
