The Financial Conduct Authority (FCA) has fined Starling Bank Limited £28,959,426 for failings in its financial crime systems and controls related to its financial sanctions screening, and breaching a requirement not to open accounts for high-risk customers. The FCA’s joint executive director of enforcement and market oversight, Therese Chambers, labelled Starling’s financial sanction screening controls as ‘shockingly lax’.

Who can issue individual guidance? The FCA has a power to issue individual guidance. The PRA was not given equivalent statutory powers in Part 9A of FSMA 2000, however, it may allow PRA authorised firms to take account of certain guidance issued by the FCA. This Practice Note outlines the FCA procedures on individual guidance. What is individual guidance? The FCA's policy on individual guidance is set out in the FCA's Supervisory Handbook (SUP), chapter 9, SUP 9. Individual guidance is oral or written guidance from a regulator that: • is given to a particular person as opposed to persons or regulated persons generally, and • relates to that person's own particular circumstances or plans on how the rules and general guidance in the FCA Handbook and FSMA 2000 or other regulatory requirements apply in its particular circumstances The FCA 's power to issue individual guidance is derived from FSMA 2000, 139A, which also covers the FCA's power to issue general guidance. SUP 9 details the FCA's application and purpose on individual guidance. How

Background to FCA inducements requirements This Practice Note explains the Financial Conduct Authority's (FCA) rules on inducements (for example fees, commission or non-monetary benefits) including rules prohibiting inducements and exceptions to the prohibition. The UK regulatory regime has always had prescriptive rules on the types of benefits that are payable in respect of dealings in retail investment products. Historically the FCA’s rules on inducements were primarily contained in chapter 2.3 of the FCA’s Conduct of Business Sourcebook (COBS) and implemented inducements requirements contained in: • the Markets in Financial Instruments Directive (Directive 2004/39/EC) (MiFID) • the MiFID implementing Directive (Commission Directive No. 2006/73/EC) • the fourth Undertakings for Collective Investment in Transferable Securities Directive (Directive 2009/65/EU) (UCITS IV) and • the UCITS IV Implementing Directive (Commission Directive 2010/43/EU) MiFID was replaced by the recast Markets in Financial Instruments Directive (Directive 2014/65/EU) (MiFID II Directive) and the EU Markets in Financial Instruments Regulation (Regulation (EU) 600/2014,OJ L 173, 12.6.2014) (EU MiFIR) (together the EU MiFID II framework). Both the MiFID II Directive and EU MiFIR entered into

The Financial Conduct Authority (FCA)  has started criminal proceedings against Terry Dodd, John Riley, Brian Flanagan, and Terry MacPherson, who have been charged with conspiracy to commit false accounting under section 1(1) of the Criminal Law Act 1977. In addition, Terry Dodd, John Riley and Brian Flanagan have been charged with fraudulently abusing their positions as directors of the Dial-A-Cab Credit Union  under sections 1(1) and 4 of the Fraud Act 2006. The FCA alleges that over a 6-year period between 1 September 2012 and 4 September 2018, the four individuals transferred funds out of the credit union for the benefit of themselves and their families.

The Financial Conduct Authority (FCA) has started criminal proceedings against Kerry Nelson and Jacqueline Stephens for alleged fraud, forgery, and money laundering. Nelson, a director at Nexus Independent Financial Advisers Limited and Nexus Investment Managers Limited, and Stephens, a business operations manager at the same firms, are accused of defrauding four clients of £2m between January 2019 and January 2023. They allegedly used false documents in the fraud. Nelson also faces a money laundering charge for allegedly withdrawing funds to support her lifestyle. Nelson and Stephens appeared before Portsmouth Magistrates' Court on 28 February 2025. Nelson pleaded not guilty to all offences, while Stephens gave no indication of plea. The case has been transferred to Portsmouth Crown Court, with their next appearance scheduled for 31 March 2025. Both individuals have been released on conditional bail.

The Financial Conduct Authority (FCA) has intensified its efforts to combat misleading and illegal financial promotions. In 2024, nearly 20,000 promotions were withdrawn or amended, almost double the number from 2023. The FCA is particularly concerned about promotions related to cryptoassets, debt solutions, and claims management companies (CMC), with 9,197 CMC promotions withdrawn, many targeting vulnerable consumers. The FCA is urging social media platforms to better identify and prevent illegal promotions and has taken targeted action against so-called 'finfluencers', resulting in 20 interviews under caution. The FCA has introduced stricter rules, such as the Section 21 Gateway, which requires firms to obtain permission before approving promotions for unauthorised persons and has issued 2240 warnings about unauthorised or potentially scam firms.

The Financial Conduct Authority (FCA) has introduced a new notification system for material changes to Collective Investment Schemes (CIS) recognised under the Overseas Funds Regime (OFR). Operators and Fund Management Companies must now use the Connect system to notify the FCA of specific changes, such as alterations to fund names, legal structures, investment objectives, and connected parties. Other changes, including regulatory contraventions and supervisory sanctions, must be notified via email.

The Financial Conduct Authority (FCA) has published policy statement PS24/3: Consumer Credit – Product Sales Data Reporting, which sets out final rules and guidance for incorporating three new product sales data (PSD) returns into the FCA’s Supervision Manual (SUP 16). Firms affected by the changes need to ensure their reporting is in line with the changes, and will need to implement the changes within the timescales in Appendix 1, Handbook Text and highlighted in the thresholds section of chapter 3.

The Financial Conduct Authority (FCA) has announced that it is investigating potential offences by Euro Exchange Securities UK Ltd (EES). The FCA says between 1 February 2020 and 4 June 2026, EES may have committed offences under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692. The FCA says it has not yet reached any conclusions in this investigation as to what has happened or as to whether EES has breached any relevant requirements.

Law360, London: The Financial Conduct Authority (FCA) is currently investigating 76 cases of bullying, harassment or discrimination in the financial sector, a senior executive has told a parliamentary committee.

Scope and purpose of this Practice Note This Practice Note provides a guide to the requirements set out in the Financial Conduct Authority’s (FCA) Conduct of business sourcebook (COBS), with links to appropriate materials. Firms that are authorised under the Financial Services and Markets Act 2000 (FSMA 2000) that carry on ‘designated investment business’ or ‘long-term insurance business’ in relation to ‘life policies’ have to comply with a wide range of high level day-to-day business standards set out in COBS and which the FCA constantly reinforces. The purpose of the COBS rules is to protect clients and to ensure that they are treated fairly (see COBS 1.1.1R and 1.1.1AR). The FCA is keen to ensure that clients are always able to make effective and well-informed choices. There are separate FCA sourcebooks dealing with conduct of business for: • mortgage and home finance business (MCOB) • insurance business (ICOBS), and • banking (BCOBS) These sourcebooks, along with COBS and the Client Assets sourcebook (CASS) are contained in the Business Standards block of the FCA Handbook.

The Financial Conduct Authority (FCA) has invited UK and Swiss firms to express interest in providing cross-border services under the Berne Financial Services Agreement (BFSA), which aims to reduce regulatory barriers and support the international competitiveness of UK financial markets. The agreement allows certain UK firms to provide wholesale financial services into the Swiss domestic market based on UK rules, without the need to comply with Swiss regulations, while Swiss firms may offer investment services to UK high net worth clients, professional clients and eligible counterparties without requiring UK authorisation. The FCA is working with Swiss authorities to establish mutual supervisory arrangements and a streamlined registration process. The FCA noted that in 2024 that UK-Swiss financial services trade was valued at just under £5bn. Firms can find further information and register their interest via the FCA’s BFSA page.