2022 saw the Financial Conduct Authority levy 26 fines totalling over £215million, more than double the 10 fines levied in 2021.

It’s important to note, also, that the number of fines against individuals rose sharply from 3 in 2021 to 10 in 2022 and totalled over £1.5million, highlighting very clearly the FCA’s view that fines against individuals can be an effective way of deterring misconduct.

In addition to enforcement activities and levying of fines and other penalties, the FCA is taking a more proactive and assertive approach to supervision through ‘interventions’, which include wide-ranging powers to impose requirements, restrictions or variation of permissions for firms, often on an urgent basis.

Their ‘Approach to Enforcement’ provides further insight into their approach: https://www.fca.org.uk/publications/corporate-documents/our-approach-enforcement

Analysis of the background to the fines provides us with details of key areas where deficiencies were observed, and regulated firms should pay close attention to these findings and consider their own controls as a priority for 2023:

➡ AML, AB&C and Fraud systems and controls

➡ Operational risk management and governance

➡ Risk management systems

➡ Risk mitigation

➡ Policies and procedures

➡ Staff training

➡ IT project governance

➡ Customer activity monitoring

➡ Arrangements, systems, controls and procedures

➡ Information publishing

➡ Conducting business with due skill, care, integrity and attention

➡ Management Conflicts of Interest

➡ Oversight and governance

➡ Identification of deficient controls

➡ Treating customers fairly

➡ Trade Monitoring/surveillance

➡ Correspondent Banking

➡ Giving advice to customers

⛔ The FCA’s message is clear: misconduct will not be tolerated

To see further details of the fines imposed, click here

Need Help?

At Plenitude Consulting, we offer services to help and support you with independent reviews of your existing controls and operations and can provide guidance with regard to remedial actions. To learn more, email us at enquiries@plenitudeconsulting.com

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