Enforcement outlook – firms assailed by rising fines

In an ambitious strategy, the Financial Conduct Authority has bitten off significantly more investigations, is keeping firms and individuals under investigation for longer, and meting out stiffer penalties. But – while the Senior Managers and Certification Regime may be deterring misconduct – its efficacy in holding senior individuals to account for breaches remains uncertain. By Jonathan Cary and Lucy Kerr.

Jonathan Cary is a partner who specialises in banking and finance disputes, while Lucy Kerr is a senior associate who advises on contentious financial services regulatory matters, at law firm RPC (Reynolds Porter Chamberlain). Contact them on jonathan.cary@rpc.co.uk and lucy.kerr@rpc.co.uk.

The FCA’s Enforcement Division has been atits busiest in the past year, with more investigations open now than ever before. What are the drivers behind this increase and what are the regulator’s priorities for the future?