Do FCA de-risking warnings raise more questions than they answer?

Not only are financial institutions juggling anti-money laundering compliance with admonitions to avoid ‘wholesale de-risking’ – they also face competition law risks such as abusing a dominant position or anti-competitive agreements. More clarity is needed, urge Guy Wilkes and David Harrison.

Guy Wilkes is a financial services regulatory and enforcement partner, while David Harrison is a partner and co-head of the European antitrust and competition practice, at law firm Mayer Brown.

The Financial Conduct Authority’s waving of a competition stick at banks it accuses of inappropriate de-risking might have adverse effects on an industry that is already in a state of discomfort about the regulatory response to anti-money laundering (AML) failures. The FCA should tread carefully.