When it comes to navigating the complex world of FCA regulations, it can be easy to feel overwhelmed and unsure of where to begin. Firms should also have systems in place to identify and report any breaches of FCA regulations. This can include training on specific FCA regulations, such as the money Laundering regulations or the Senior Managers and Certification Regime. For example, if the FCA introduces new rules or guidance, firms should review their policies and procedures to ensure they are compliant.
We regulate financial services firms and markets in the UK, setting standards for firms to meet and holding them to account if they don’t. Our new tool for consumers makes it easier to check if financial services firms are authorised and have permission to sell you products and services. We enable a fair and thriving financial services market, for the good of consumers and the economy. The FCA’s regulatory overhaul highlights the ongoing evolution of financial markets and the need for robust mechanisms to protect consumers. The UK’s Financial Conduct Authority (FCA) has moved into the final consultation phase for comprehensive cryptocurrency regulations, marking a significant step toward regulatory clarity in the British crypto market. The FCA has opened its final consultation on crypto consumer duty rules, setting clearer conduct standards ahead of new authorization requirements.
Per DOJ, “as a result of the fraud,” Hino imported and sold more than 105,000 non-conforming engines between 2010 and 2022.ciii The Court ordered a criminal fine of $521.76 million as well as a $1.087 billion forfeiture money judgment against the company. In 2025, this has included resolutions and actions involving various types of fraud, some of which are more traditional investment or consumer fraud cases and others reflect newer areas of priority, including trade fraud and transnational scams that target U.S. citizens. Under the plea agreement, Cadence paid a criminal fine of $72,488,507.86, which included a 20% reduction for cooperation and remediation and a $24,832,507.86 offset for civil penalties imposed in a parallel BIS administrative action.xcvi DOJ explained that it awarded only partial cooperation credit because Cadence had failed to proactively obtain and disclose certain communications of, and facilitate interviews with, certain China-based employees with relevant information.xcvii Cadence’s remediation efforts, including the expansion of compliance and training programs, enhancement of screenings, and addition of experienced personnel, were cited favorably.
- He argued that crypto projects would prioritize launching in jurisdictions with “better tax treatment,” including Portugal, Singapore, and the Middle East.
- The FCA has shown its ability to adjust by creating rules that strike a balance between encouraging innovation and safeguarding consumer interests.
- Enforcement actions and penalties under the FCA can have serious consequences for individuals and companies, including hefty fines, exclusion from federal programs, and reputational harm.
- By the time comprehensive UK regulation arrives, many projects will have already gone elsewhere,” he said.
- This can include following relevant news sources, attending industry events and webinars, and consulting with legal experts or regulatory agencies.
- The sentence also included a five-year term of probation, and requirements for Hino to implement a comprehensive compliance and ethics program and reporting structure.
Its primary role is to ensure that financial markets operate effectively, and that consumers are protected from unfair practices. The Act created a new regulatory framework for financial services and abolished the Financial Services Authority. The subsequent selection process, culminating in the start of testing in April 2026, will prioritize firms that can contribute meaningfully to the understanding of AI’s impact on financial markets. As AI continues to evolve, the FCA, led by CEO Nikhil Rathi, is keen on ensuring that these advancements are aligned with regulatory standards and consumer protection measures. This includes frameworks for evaluating AI solutions and mechanisms to ensure compliance with existing regulatory standards.
DOJ has stressed a decreased focus on charging regulatory violations in cases involving digital assets absent evidence that the defendant willfully violated the licensing or registration requirement at issue.xliv Similarly, unless granted approval by the Deputy Attorney General, prosecutors will not charge violations under conventional financial regulatory statutes—including the Securities Act of 1933, the Securities Exchange Act of 1934, the Commodity Exchange Act, or the regulations promulgated thereunder—if doing so requires DOJ to litigate whether a digital asset is a “security” or “commodity” and alternative criminal charges available, such as mail or wire fraud, are available.xlv The consultation focuses on how firms offering cryptoasset services should meet requirements around consumer protection, conduct standards and regulatory oversight. FCA regulations are a set of rules and guidelines that financial services firms must follow to ensure that they are operating in a fair and transparent manner. We enable a fair and thriving financial services market for the good of consumers and the economy.
Latest policy and guidance
- By complying with these policies, firms can build trust with their customers and avoid regulatory action.
- FCA authorization can be a tricky subject to understand, especially for those who are not familiar with the financial industry.
- Per DOJ, “as a result of the fraud,” Hino imported and sold more than 105,000 non-conforming engines between 2010 and 2022.ciii The Court ordered a criminal fine of $521.76 million as well as a $1.087 billion forfeiture money judgment against the company.
- Join millions, easily discover and understand cryptocurrencies, price charts, top crypto exchanges & wallets in one place.
- 21 If a contravention or non-compliance that is designated under paragraph 19(1)(a) or (a.1) can be proceeded with either as a violation or as an offence, proceeding in one manner precludes proceeding in the other.
- The development has caught the attention of market participants, who are now evaluating the impact on their operations and offerings.
- Its primary role is to ensure that financial markets operate effectively, and that consumers are protected from unfair practices.
Most provisions come into force on 25 October 2027, though early implementation will allow the FCA to issue rules, guidance and authorisations ahead of full commencement. It also creates civil and criminal liability for breaching specified requirements. The framework establishes disclosure standards, about which the FCA is responsible for specifying content and format in due course. Public offers of qualifying cryptoassets will be prohibited unless an exemption applies.
In a market known for sharp price swings, these rules are designed to reduce the risk of sudden liquidations, protect retail investors from hidden risks and help keep platforms stable. Firms must meet enhanced conduct standards, and retail clients’ liability is capped at the value of the collateral they provide. Pre-trade transparency will apply only to firms with annual revenues above £10 million (designated as Large CATPs) and require them to publish the best five bids and offers for each cryptoasset pair, while principal dealers must disclose firm quotes. Pre-and post-trade reporting, restrictions on staff trading and other conduct rules further mirror traditional finance. Building on its principle of “same risk, same regulatory outcome”, the FCA has designed its proposals around existing regulatory frameworks, adapted for the unique characteristics of crypto.
32 The Governor in Council may make regulations prescribing Payment card network operator means an entity, as defined in section 3 of the Payment Card Networks Act, that operates or manages a payment card network, as defined in that section, including by establishing standards and procedures for the acceptance, transmission or processing of payment transactions and by facilitating the electronic transfer of information and funds. We make sure the UK’s financial markets are honest and fair. And for market participants, the time to prepare is now – because compliance will be the price of entry into this new era. Taken together, these proposals mark a decisive shift for the UK crypto market.
Department of Justice Corporate Enforcement: 2025 Year in Review
More recently, on December 4, 2025, Deputy Attorney General Todd Blanche announced a cmc markets review plan to issue a new corporate enforcement policy applicable to all criminal cases across the Department in order to promote consistency across all DOJ components and U.S. Third, under the “efficiency” principle, the Galeotti Memorandum directed prosecutors to “take all reasonable steps to minimize the length and collateral impact of their investigations, and to ensure that bad actors are brought to justice swiftly and resources are marshaled efficiently.”xv Prosecutors were also directed to “move expeditiously to investigate cases and make charging decisions” and to impose “compliance monitors” only when “a company cannot be expected to implement an effective compliance program or prevent recurrence” without “such heavy-handed intervention.”xvi Second, under the “fairness” principle, the Galeotti Memorandum stated that “not all corporate misconduct warrants federal criminal prosecution,” and emphasized the importance of “policies that acknowledge law-abiding companies and companies that are willing to learn from their mistakes.”xii
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The report, compiled after a series of financial scandals where the FCA was accused of inaction, found “very significant shortcomings” in the regulator. Shortly thereafter, committee chair Andrew Tyrie said it looked as if the FCA had been guilty of an “extraordinary blunder” and had created a “disorderly market” through its actions. There had been calls for the resignation of chairman John Griffith-Jones because of his responsibility for auditing HBOS as chairman of KPMG at the time of the 2008 financial crisis. In April 2023, the FCA took action against WealthTek Limited Liability Partnership, a wealth management firm, due to serious regulatory and operational issues. This means that if individuals or organizations are dissatisfied with the way the FCA has handled a situation, made a decision, or conducted its duties, they can escalate their complaint to the FRCC for an impartial assessment. Any firm intending to carry out cryptoasset activities within the UK must register with the FCA prior to commencing operations.
Payday loans in the United Kingdom
Automatic top-ups are capped at 50% of the initial collateral’s market value (net of fees), preventing borrowers from taking on unlimited leverage. Over-collateralisation is mandatory, and firms may only supplement collateral with prior client approval. Before entering into any lending or borrowing arrangement, firms must give retail clients clear, transaction-specific information and obtain explicit consent to the key terms.
In addition, the FCA is able to ban financial products for up to a year while considering an indefinite ban. It was established in January 2018 to oversee the 22 accountancy and legal professional bodies which supervise anti-money laundering compliance in view of the Money Laundering Act 2017. These rules, effective from 29 July 2024, created a single listing category and streamlined eligibility criteria to encourage a wider range of companies to issue shares in the UK. The FCA is responsible for the conduct of around 58,000 businesses which employ 2.2 million people and contribute around £65.6 billion in annual tax revenue to the economy in the United Kingdom. Our people work across law, insurance, banking, policy, technology services and more.
Under the Consumer Credit Act 1974 lenders must have a licence from the UK Office of Fair Trading (OFT) to offer consumer credit. These borrowers tend to live in rented properties or with parents and are more likely to be in financial difficulties. This includes Wonga, Enova (trading as Quickquid and Onstride), Dollar (Moneyshop, Payday Express, Payday UK), Curo/Cash euro net (trading as Wageday Advance).citation needed As at June 2021 the largest players left in the market were Mr Lender and Lending Stream, although there are many other lenders include CashFloat, Moneyboat and The Money Hive.
Recent actions taken by the FCA
These standards cover areas such as financial resources, management structure, staff competence, and systems and controls. The FCA has a set of minimum standards that firms must meet to be authorized. The FCA will then review this information and assess whether the firm meets the required standards and is fit to operate in the market. For example, in 2020, the FCA introduced new regulations that capped the amount of interest that can be charged on payday loans at 0.8% per day. They must comply with regulations related to the suitability of advice, disclosure of fees and charges, and ongoing monitoring of client portfolios. Failure to comply with these regulations can result in significant fines and damage to the institution’s reputation.
This means that all firms will need to ensure that they have identified and trained lexatrade review their senior managers and certified staff in line with the new rules. In December 2019, the FCA announced that it would be extending the SM&CR to all FCA-regulated firms, including solo-regulated firms, from December 2020. This may include implementing effective compliance programs, conducting regular audits and training, and seeking legal guidance when necessary.
As these changes take root, the FCA is expected to continue its engagement with market participants, offering further guidance and possibly refining the regulations based on initial feedback and observed outcomes. It’s essential for all participants in the market to adapt to these regulatory changes to ensure compliance and informed decision-making. The regulations apply to financial instruments that represent a form of financial value—like shares, bonds, and stocks—that are tradable on a financial exchange.
These measures apply to firms already registered under money-laundering regulations (MLRs) and aim to establish clear, sustainable standards while supporting innovation in the crypto market. This includes both UK-based firms and firms based outside of the UK that want to offer financial services or products to UK consumers. This ensures that consumers are protected from fraudulent or unethical practices and that they have access to fair and transparent financial services. The regulations set forth by the FCA are designed to protect consumers from unfair practices, provide a level playing field for financial institutions, and promote competition in the marketplace. FCA regulations have a direct impact on consumers because they help to ensure that financial products and services are safe, reliable, and transparent.
{Customs and Border Protection (“CBP”)} that the products originated in Taiwan,” evading duties on those goods.lxxi Ceratizit also allegedly misclassified TCPs as being duty free, failed to mark TCPs with their country of origin, and failed to pay marking duties.lxxii Ceratizit agreed to pay $54,400,000, including $27,700,000 in restitution, to resolve these allegations.lxxiii This action was originally brought by a qui tam relator.lxxiv As noted, this resolution was coordinated through the DOJ’s Trade Fraud Task Force. The PSP required written agreements with compensation limits for individuals who earned more than $425,000 in 2019, later extended through April 1, 2023.lxviii DOJ alleged that between March 2020 and April 2023, Delta inaccurately certified quarterly compliance with PSP compensation limits and failed to notify Treasury upon discovering a breach of the limits, which would have allowed the government to demand a return of these funds.lxix Delta settled without admitting liability, resolving a qui avatrade review tam action in which the relator will receive $850,500 and $100,000 in attorneys’ fees. Walgreens also entered a seven-year memorandum of agreement with DEA and a five-year Corporate Integrity Agreement with HHS-OIG that require enhanced compliance, board oversight, training, and reporting. In February 2025, Michael Granston, Deputy Assistant Attorney General in the DOJ Civil Division, stated that, “consistent with the new administration’s stated focus on achieving governmental efficiency and rooting out waste, fraud and abuse .|These requirements mirror expectations placed on traditional financial avatrade review firms. The guidance applies to firms planning to undertake regulated cryptoasset activities under Treasury legislation from December 2025. The FCA is seeking feedback on how consumer responsibilities should integrate into crypto asset companies. Those proposals focused on clear consumer information and proportionate requirements for firms. The consultation follows proposals issued in December on applying a similar regulatory approach to cryptoassets as traditional finance.|For firms, success will depend on adapting quickly to higher standards while capitalising on the trust dividend that regulation brings. That will raise costs and complexity for firms, but it also brings credibility, transparency and clearer protections for consumers. By embedding crypto within a mature regulatory framework, the FCA is replacing loosely governed practices with structured compliance. CATPs must publish admitted assets and QCDDs, in accordance with FCA standards, and act as gatekeepers to protect consumers and promote transparency. They amend the Money Laundering Regulations, so firms offering newly regulated cryptoasset services will need full FCA authorisation under FSMA, instead avatrade review of just AML registration. The Regulations also align cryptoasset oversight with existing regimes, including financial promotions and anti-money laundering (AML).}