FCA fines this year up six times on 2018 level

The Financial Conduct Authority (FCA) has so far charged firms £391 million in 2019, up from £60 million during 2018.

This year's figure is the highest since 2015, when the regulator fined firms £905 million. More than nine of the FCA’s 17 fines in 2019 were worth more than £10 million, while only two rose above that level in 2018.

The largest fine issued was to Standard Chartered, which was forced to pay out £102 million, a portion of the more than $1.1 billion the bank was penalised across multiple jurisdictions for Anti-Money Laundering (AML) breaches in two higher risk areas of its business.

In March, UBS was fined £27.6 million for failings relating to the misreporting of 135.8 million transactions between November 2007 and May 2017, while in May, Raphaels Bank was penalised £1.89 million for failing to manage its outsourcing arrangements properly between April 2014 and December 2016.

As FStech reported earlier this year, this spate of regulatory action on banks found to be in breach of transaction reporting and AML rules has highlighted the need for more automated RegTech solutions.

Elsewhere, mis-selling was the other big trend this year, with Standard Life fined £30.8 million for pension mis-selling, Carphone Warehouse fine £29.1 million for mis-selling insurance and Prudential fined £23.8 million for mis-selling retirement products.

According to the FCA’s enforcement statistics, it has almost 700 investigations open. The caseload has meant that the average completion time of ongoing investigations is rising, and during the 2018/19 financial year it is taking an average of 29 months to settle cases.

    Share Story:

Recent Stories

New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.