A Clear Tone for FCA Enforcement

Over recent weeks, the Financial Conduct Authority (FCA) has seen a flurry of enforcement activity, securing convictions, guilty pleas and co-ordinating crackdowns on misconduct. From insider dealing to the regulation of digital influencers, it sends a clear message to firms, senior managers and market participants: the FCA will not tolerate market abuse.

At times, the FCA has faced criticism for being slow to act or failing to bring a sufficient volume of cases. Under Nikhil Rathi, the regulator has positioned enforcement as a forward-facing tool to support its mission of maintaining market integrity, promoting consumer protection and raising standards. Each case published in recent weeks speaks directly to these priorities.

In June, Mohammad Zina and Walid Choucair were convicted of insider dealing and money laundering, a win for continuous focus on more traditional forms of market abuse. The pair exploited confidential information to generate £1.5 million in unlawful gains. A five year prison term and a confiscation order were handed down to the pair, highlighting the consequence of such behaviour. The case reinforces the need for surveillance and transaction monitoring with trading patterns forming part of the evidence.

In a separate case, the FCA secured a guilty plea from John Burford in relation to a fraudulent investment scheme. Burford misled investors, receiving £500,000 by promising high returns in what were non-existent opportunities. The messaging here is heavily focused around consumer harm, underpinning the regulators Consumer Duty related work.

The FCA led an operation against rogue financial influencers, involving regulators across 19 jurisdictions. The initiative reflects growing concern over social media being used to promote unregulated advice and promotions, particularly on TikTok and Instagram. The FCA is aiming to protect younger and less financially literate consumers against digital risk.

Two rulings from the Upper Tribunal also came in June. The bans of Corrado Abbattista and James Stuart Owen were upheld for market manipulation. The case of Craig Donaldson and David Arden illustrates how the SMCR can be used to hold individuals accountable.

These cases are unrelated, but when considered together, they highlight how the FCA appears to have become more agile and willing to use enforcement as a strategy to proactively reinforce rules ahead of heightened risk, rather than responding only to past misconduct.

For risk and compliance professionals, these cases provide a roadmap of regulatory focus areas in 2025 and a reminder to maintain robust oversight. Given the recent cases above, it is the perfect time to review market abuse surveillance systems, insider information controls, governance frameworks and financial promotions.

The FCA has clearly sought to make a point with its recent activity. For regulated firms, upholding market standards and protecting customers is paramount as the FCA is willing to use every tool at its disposal.