The Financial Conduct Authority (FCA) will publish updates on current investigations and be open about when cases have been closed with no enforcement outcome.
The move represents a change from the current process where investigations are only announced in very limited circumstances.
The FCA said: “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.
“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.”
However, it said that announcing an investigation does not mean the FCA has decided whether misconduct or breaches of its requirements have occurred. Investigations into individuals will be handled differently, and the FCA will not usually announce these types of investigations.
Furthermore, the FCA is speeding up enforcement cases to strengthen the deterrent effect of its actions. As part of this new approach, the FCA has begun a consultation on plans to be more transparent when an enforcement investigation is opened.
In the future, the FCA will focus on a streamlined portfolio of cases aligned with its strategic priorities, where it can deliver the greatest impact. The FCA will also close cases where no outcome is achievable more quickly.
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.
“At the same time, we will amplify the deterrent impact of our work by enabling firms to understand the types of serious failings that can lead to an investigation, helping them to change their own behaviour more quickly.
“Greater transparency will also drive greater accountability for us as an enforcement agency.”
Steve Smart, joint executive director of enforcement and market oversight, said: “Reducing and preventing serious harm is a cornerstone of our strategy.
“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.”