FCA Enforcement Annual Report 2018/2019

Regulatory Updates | 09/07/19

The Financial Conduct Authority (FCA) has published its enforcement annual performance report 2018/2019 (Enforcement Report), covering the period to 31 march 2019. The Enforcement Report is intended to complement the FCA’s wider Annual Report covering the same period. In 2018/19, the FCA issued 265 Final Notices (243 against firms and individuals trading as firms and 22 against individuals), secured 288 outcomes using its enforcement powers (276 regulatory/civil and 12 criminal) and imposed 16 financial penalties totalling £227.3million.

The Enforcement Report sets out chapters on enforcement activity for retail and wholesale conduct, on referrals for failure to meet the FCA’s Threshold Conditions and on the FCA’s work to secure confiscation orders. The FCA’s Unauthorised Business Department has seen large increase in reports about potential unauthorised activity, an increase the FCA attributes to the success of its Scam Smart campaign, and also to the proliferation of fraudulent online trading platforms (generally based outside of the UK but targeting UK consumers). Further chapters cover the FCA’s contribution to the National Economic Crime Centre (which now incorporates the Joint Money Laundering Intelligence Taskforce) and to international fora.

The Enforcement Report also provides details of the FCA’s policy work during the year, including the publication in April 2019 of the finalised version of its FCA Mission: Approach to Enforcement, and a final chapter outlines the results of feedback from firms and individuals under investigation.