The Financial Conduct Authority (FCA) has published a report ‘Assessing and reducing the risk of money laundering through the markets’, setting out examples of good and poor practice around money laundering (ML) systems, controls and training, practical case studies, and detailed areas of focus for firms.  The report’s findings are based on the FCA’s review of the financial crime systems and controls at a sample of wholesale brokers to understand how firms are approaching their ML risk.  The FCA emphasises that the findings in the report should be considered by other types of firms.  At the same time, the FCA has issued a press release warning wholesale brokers to improve their anti-money laundering (AML) systems, controls, risk awareness and training, noting key challenges around transaction monitoring, knowledge of the Suspicious Activity Report (SAR) glossary, information sharing, and documenting customer risk assessments in sufficient detail.

The Financial Conduct Authority (FCA) has reported the successful prosecution of Stuart Bayes for two offences of insider dealing at Southwark Crown Court on 28 March 2024. Bayes was an employee at RPC Group Plc and had obtained information that RPC were about to announce the acquisition of British Polythene Industries (BPI). Between 2 May 2016 and 8 June 2016, Bayes traded in BPI shares and realised profits of over £132,000. Bayes also encouraged Jonathan Swann to trade in BPI shares, however Swann was found not guilty of insider trading. Bayes will be sentenced on 26 April 2024.

The Financial Conduct Authority (FCA) has announced a confiscation order of £5,963,376.15m secured against Guy Flintham, who is currently serving a six-year prison sentence for fraud by misrepresentation. The order stems from Flintham's fraudulent investment scheme that defrauded over 240 investors of £19m. The court determined Flintham's criminal benefit to be £23,932,204.84m, with the confiscation amount based on his available assets.

Law360: A group representing European financial firms said 5 June 2024 that the Financial Conduct Authority's (FCA) proposals to give asset managers more choice in how they obtain and pay for research are too inflexible, failing to make the UK more competitive.

The Financial Conduct Authority (FCA) has published a research note addressing ‘AI explainability’ as a solution to the lack of transparency in Artificial Intelligence (AI) and Supervised Machine Learning (SML) systems and its potential impact on consumer outcomes.  The note, which is part of the FCA’s AI Research Series, explores the use of AI explainability techniques in the context of algorithm-assisted decision-making, using consumer credit decisions as a case study to test out different approaches.

The Financial Conduct Authority (FCA) has published its response to the Cost Benefit Analysis (CBA) Panel’s interim annual report, published in January 2025. The response acknowledges the Panel’s recommendations to strengthen the FCA’s approach to cost benefit analysis. These include enhancing the use of CBA beyond statutory requirements, applying it more consistently throughout the policy development process and broadening its scope to consider cumulative impacts and non-statutory interventions.

The Financial Conduct Authority (FCA) has responded to the Complaints Commissioner’s report 202201587 concerning the FCA (and its predecessor, the FSA)’s actions regarding the Connaught Income Fund Series 1 and connected companies (the Fund). The Commissioner had concluded that the FCA/FSA had a contributory role in the complainant’s losses and recommended that compensation should be paid by the FCA in respect of tax the complainant paid which was not refunded as part of the scheme. However, the FCA says that, in a separate complaint, the previous Commissioner did not consider the regulator’s actions in relation to Connaught unreasonable. Therefore the FCA does not accept the Commissioner’s recommendation.

The Financial Conduct Authority (FCA) has responded to the House of Lords Financial Services Regulation Committee (FSRC)’s letter querying its proposal to announce investigations when they are opened and name the firms involved, without prejudice to the outcome. The proposal is set out in consultation paper CP24/2: Our Enforcement Guide and publicising enforcement investigations––a new approach.

The House of Lords Financial Services Regulation Committee (FSRC) has published a letter addressed to its chair, Rt Hon. the Lord Forsyth of Drumlean, from the chief executive of Financial Conduct Authority (FCA), Nikhil Rathi. The letter provides an update on the FCA's work regarding the transparency of enforcement investigations, following the publication of FCA consultation paper CP24/2 and a report from the Committee. Rathi highlights the FCA's improved efficiency in closing investigations and a significant reduction in the number of open operations. He also discussed the FCA’s proposals for increased transparency to serve the public interest, which were initially set out following a recommendation by the Public Accounts Committee, but after receiving concerns from industry groups and governments, the FCA revised these proposals for further consultation, ultimately deciding not to publicise investigations into regulated firms unless exceptional circumstances arise due to a lack of consensus.

The Financial Conduct Authority (FCA) has updated its webpage on MS19/1: Credit Information Market Study to note that it has published feedback to the Interim Working Group (IWG)’s final report, and provided an accompanying update. The FCA says it will continue to fund the IWG Chair and Secretariat resource for a short period, for the purpose of carrying out specific, essential transition activities that will allow the transition to the new Credit Reporting Governance Body (CRGB) to continue. Once these essential activities are complete and permanent CRGB staff are in place, the FCA will cease funding this staff resource and step away to allow industry to take forward the new governance body. The FCA says it expects this to be by the end of Q3 2025.

The Financial Conduct Authority (FCA) has published feedback statement FS25/4 in response to the Joint Regulatory Oversight Committee’s (JROC) consultation on the design of the Future Entity for UK open banking. The statement sets out proposals for replacing Open Banking Limited with a new not-for-profit company limited by guarantee that will act as the central body for open banking standards. The Future Entity is expected to oversee Application Programming Interface (API) standards, support interoperability and enable commercial schemes. It will not have enforcement powers and is not intended to operate as a public body. The statement also outlines recent progress in open banking, including the completion of the Competition and Markets Authority’s roadmap, the enactment of the Data (Use and Access) Act 2025 and the development of a commercial scheme to support variable recurring payments. A series of workshops is planned for summer and autumn 2025 to inform the entity’s establishment, with further details expected by year-end.

The CEO of the Financial Conduct Authority (FCA), Nikhil Rathi, has responded to the Treasury Committee’s follow up questions from the 12 December 2023 evidence session on the work of the FCA. Rathi discusses cost disclosure by investment companies; reinsurer Flood Re and general question on insurance markets; the FCA’s proposed changes to the securitisation rules in consultation paper CP23/17; and HM Treasury’s proposed reforms to UK anti-money laundering (AML) supervision.