Fines issued by the FCA more than doubled in 2022

Jan 6, 2023 10:41:13 AM

What has happened?

In January 2023, it was reported that the number of fines issued by the FCA had more than doubled last year, rising from 10 in 2021 to 26 in 2022, according to international law firm RPC.

What are the key points for firms?

Fines relating to the mistreatment of retail customers in 2022 covered a number of areas, including poor advice regarding pension transfers, investing in risky assets within a self-invested personal pension, and poor treatment of customers in guarantor loans.

Jonathan Cary, a partner at RPC, was quoted as saying that the increase in the number of fines is in part a response to the Treasury Select Committee 2021 report on the mini-bond scandal recommending that the FCA be more decisive and proactive to protect retail investors.

The FCA has said that it is determined to protect consumers whose financial stress during the cost of living crisis might lead them to make unwise investment or borrowing decisions.

The number of FCA fines levied against individuals also rose, from three in 2021 to 10 in 2022 and the FCA’s position is that fines against individuals are an effective way of deterring misconduct.

Jonathan Cary emphasised that the FCA has wide-ranging powers to impose requirements or variation of permissions, often on an urgent basis.

How can we help you?

If you’d like to know more about how we can help you with your FCA enforcement arrangements, or any other regulatory compliance issues, our specialist team is here to help.

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