FCA to step up enforcement efforts

FSA Buildings Towers 480

The FSA says the new Financial Conduct Authority will step up its enforcement efforts, aiming to bring more cases against individuals and prioritising consumer compensation.

In its Journey to the FCA document, published today, the regulator says it will press for tougher penalties against those who break the rules, hold members of senior management to account for their actions and continue to look for prosecutions against insider dealing and market manipulation.

The document says: “We will take action, including enforcement actions, where we consider that particular aspects of a firm’s business model or culture – such as its product selection, training and recruitment or remuneration practices are likely to harm consumers.

“We will also place more emphasis, at an earlier stage, on securing redress where consumers have suffered harm.”

The incoming FCA will have the powers to publicly announce when it has begun disciplinary action.

Before taking action against dual-regulated firms, the FCA will conduct with the Prudential Regulation Authority and decide whether to pursue a joint investigation or for one to act alone.