Context
Therese Chambers, FCA Joint Executive Director of Enforcement and Market Oversight, has delivered a speech at the AFME Annual European Compliance and Legal Conference, regarding the impact of evolving threats on FCA enforcement. The FCA is changing its approach to enforcement to help increase public confidence within financial services. The FCA is requiring cooperation and commitment from across the industry and regulators to stop market abuse, keep the financial services markets clean, and to build trust.
Key points to note and next actions
- The FCA is adapting its approach to enforcement to meet evolving threats and maximise the deterrent effect.
- It is making its investigations faster and more focused to nip financial crime in the bud and send timely signals to markets and consumers.
- Enforcement is just one of the FCA’s tools – industry cooperation, assertive supervision and intervention powers are also key in dealing with harm.
Chambers reflected on the controversy over the FCA’s “naming and shaming” proposals, saying that:
- the FCA is committed to conducting investigations at greater pace, and will be streamlining its caseload and focusing on investigations better aligned to its strategic priorities;
- that a reduction in the number of investigations does not mean a reduction in effort, indeed quite the opposite;
- the FCA will make conscious decisions to identify cases where it believes there may be conduct creating the greatest risk of harm, and where an investigation is most likely to drive the greatest deterrence;
- the FCA will not simply go for “the low hanging fruit”;
- the FCA will continue to investigate potential misconduct by individuals and firms, and will never shy away from challenging and complex investigations. So, whilst it might be opening fewer investigations, it expects to see a greater number of outcomes and a greater impact from its enforcement activity.