The Financial Conduct Authority has said financial services firms that cooperate with the regulator will be rewarded, emphasising that doing the right thing can be both ethical and financially smart.
Speaking at the City & Financial Global FCA Investigations and Enforcement Summit on Monday (20 October), Therese Chambers, joint executive director of enforcement and market oversight, outlined how the regulator is cutting investigation times, prioritising consumer redress, and rewarding firms that act responsibly.
“Doing the right thing is about keeping your side of the street clean,” Chambers said.
“Recognising when something has gone wrong, taking responsibility, and putting things right for consumers is central to how we approach enforcement.”
She noted that the FCA has reduced the number of open enforcement cases from 220 in 2023 to 124 while delivering more public outcomes.
Seven recent investigations achieved a public outcome in 16 months or less, compared to a previous average of 42 months. Enforcement now typically results in action, with fewer cases ending with no further measures.
Consumer redress is also being prioritised. Over the last financial year, the FCA secured more than £442 million for investors and consumers through redress schemes, settlements, and civil proceedings.
Examples include voluntary motor insurance compensation schemes expected to deliver £200 million to around 270,000 drivers and borrower redress schemes worth £354 million.
Chambers emphasised that firms can benefit materially by working with the regulator, citing Barclays voluntarily paying £6.3m to WealthTek clients during a recent investigation, which reduced its financial penalty to £3 million from what could have been double that.
H2O avoided a fine entirely by proactively making €250m available to affected investors and agreeing to cancel its authorisation.
“If you do the right thing, we take notice and it can reduce penalties or even prevent them altogether,” Chambers said.
She urged firms to see the FCA as a partner rather than an adversary but warned that non-compliance comes at a high cost.
Firms that fail to act responsibly face extensive investigations, heavy fines, and reputational damage.
“Most firms choose to follow the through line,” she said.
“Those that do the right thing reap the benefits. For those that don’t, the cost of inaction is far higher.”
