| Link(s): | CP26/19: Changes to our penalty and decision-making policies | FCA CP26/19: Decision Procedure and Penalties Manual updates |
Context
The FCA has published a Consultation Paper, CP26/19, in relation to small number of targeted proposed changes to its penalty and decision making policies in the DEPP Sourcebook. DEPP sets out how the FCA makes enforcement decisions and calculates financial penalties, including a 5-step process based on seriousness, deterrence and mitigating factors.
Key points to note and next actions
The proposals are:
- Market abuse: for the most serious cases, raising the minimum for individuals from £100,000 to £150,000 to account for inflation.
- Deterrence for wealthier individuals: making clear we may increase penalties for deterrent effect, having regard to income and assets.
- Penalties for individuals – relevant income: clarifying how we treat deferred bonuses, pay and shares, in line with recent Tribunal decisions.
- Serious financial hardship thresholds: raising income and capital thresholds to reflect living costs and update them over time.
- Settlement decision-makers: allowing more flexibility in who makes settlement decisions in some cases.
- Cryptoasset market abuse regime: consequential amendments: extending our penalty framework to cover cryptoasset market abuse and reflect new powers under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026.
The FCA is inviting feedback on the proposals by 10 August 2026, using the online response form or by emailing cp26-19@fca.org.uk.