Trends in Regulatory Enforcement in UK Financial Markets: 2017/18 Mid-Year Report

Thu Jan 18 10:04:15 EST 2018
By Erin B. McHugh

In our 2017/18 mid-year report on Trends in Regulatory Enforcement in UK Financial Markets, NERA Associate Director Erin B. McHugh uses our proprietary database of enforcement activity to analyse trends in enforcement and litigation in order to look behind the headline numbers.

Fine activity from the Financial Conduct Authority (FCA) remained at a low level over the 12 months ending 30 September. However, the regulator has indicated that we should not view this as a return to “light touch” regulation.

While the number of FCA investigations has substantially increased compared to prior years, we expect proportionately fewer of those investigations to result in an enforcement outcome, consistent with the FCA’s “evolving approach” to investigations.

Our report has an in-depth analysis of the first six months of the regulator’s 2017/18 financial year, including:

  • Updates on FCA enforcement activity, including both fines and non-pecuniary measures;
  • Recent trends in FCA criminal prosecution;
  • The FCA’s evolving approach to investigation; and
  • The FCA’s enforcement priorities and likely areas of focus in 2018 and beyond.