Regulatory Investigations Update - April 2015

Perhaps the most striking feature of FCA enforcement work over the last couple of months is the number of record fines it has issued. This edition of the Regulatory Investigations Update contains reports on the largest fines to date for breaches of Principle 11, PPI complaints handling, transaction reporting and CASS and the rules and guidance relating to compliance.

This demonstrates that, notwithstanding the emphasis which has been placed upon early intervention and the use of a wider variety of tools to improve firms’ behaviour, enforcement action (and resulting fines) are still regarded by the FCA as being powerful mechanisms, sending messages to the wider market about the standards to which the FCA expects firms to adhere. These decisions also highlight the difficulties of the FCA trying to apply its “one size fits all” penalty framework to cases in a variety of different areas. The FCA has itself recognised the need to review the operation of its penalty policy and plans to do so this year.