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Number of FCA fines more than doubled in 2022

FCA Begins Criminal Proceedings Against Investment Fraudsters
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The number of fines issued by the Financial Conduct Authority more than doubled last year, with 26 fines issued in 2022 compared with just 10 in 2021.

These included fines for breaches of money laundering regulations, inadequate risk management systems and breaches in relation to the risk of financial crime.

FCA fines levied against individuals also saw an increase from only 3 in 2021 to 10 in 2022.

Fines relating to the mistreatment of retail customers in 2022 covered a number of areas, and could be an indication of the FCA’s more “proactive” approach to protect retail customers leading up to its new Consumer Duty requirements.

Alongside its enforcement activities and levying of fines and other penalties, we have also seen the FCA taking a more proactive and assertive approach to supervision with what it has termed ‘interventions’. This includes wide-ranging powers to impose requirements or variation of permissions, often on an urgent basis, and an increase in the number of Skilled Persons Audits (Section 166 audits).

Commenting on the FCA’s approach, Nigel Reed, Neopay’s COO, said, “This is another example of the FCA’s more assertive approach- with more scrutiny and enforcement action. We recommend firms are proactive in ensuring their regulatory compliance – for example with regular reviews and tests. Firms also need to make sure they are on target to meet the consumer duty requirements.”

How Neopay can help

At Neopay, using our experience of the FCA’s more assertive approach, we’ve developed targeted audits and testing focussed on specific FCA priorities, helping your firm reduce risk from FCA scrutiny in a cost effective and practical way. For more information on the FCA’s Consumer Duty or to find out how we can help you meet your regulatory requirements, contact out team of compliance specialist here.

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