UK’s FCA Shuts Down 100 Investigations and Slashes Oversight Activities in 2026
- Is the FCA Reducing Its Oversight Activities?
- How Does Enforcement Data Compare to Previous Years?
- What’s Driving the FCA’s Lighter Touch?
- How Does the FCA’s Approach Compare to the SEC’s?
- What’s Next for UK Financial Regulation?
- Frequently Asked Questions
The UK’s Financial Conduct Authority (FCA) has dramatically scaled back its enforcement efforts, closing 100 ongoing investigations and shifting focus to high-impact cases. This MOVE mirrors similar regulatory easing by the US Securities and Exchange Commission (SEC), as both agencies prioritize efficiency and political pressures. Here’s a deep dive into the FCA’s new strategy, its implications, and how it compares to global trends.
Is the FCA Reducing Its Oversight Activities?
Yes, the FCA has significantly curtailed its enforcement operations, dropping 100 investigations without action in less than three years. Since its inception in 2013, this marks the largest wave of case closures, slashing active investigations to 124 in October 2025—down from 230 in 2022. The shift began under joint enforcement chiefs Therese Chambers and Steve Smart, who took charge in April and June 2023, respectively. Their approach? Fewer cases, but with greater impact.
Between April and November 2025, the FCA wrapped up 24 investigations: nine closed without penalties, while 15 resulted in disciplinary actions. Notably, the agency opened just 23 new cases in March 2025—a stark drop from its historical average of 50+ annually. City lawyers note the FCA now targets clear-cut violations with predictable outcomes, a departure from its earlier "diagnostic" approach.
How Does Enforcement Data Compare to Previous Years?
Despite fewer cases, the FCA announced 41 enforcement actions in 2024 and 33 in 2025—both exceeding its historical annual average of 20–25. Last year’s biggest fines targeted anti-money laundering (AML) violations, including £44 million for Nationwide Building Society and £39 million for Barclays Bank. Seven investigations reached conclusions within 16 months, far quicker than the historical 42-month average.
What’s Driving the FCA’s Lighter Touch?
Two words: political pressure. The UK government has pushed regulators to ease business restrictions and support the struggling economy. The FCA frames this as an efficiency upgrade, claiming it’s still cracking down on "the most serious misconduct." Critics, however, see a regulatory retreat—especially with a crypto-friendly administration in power.
How Does the FCA’s Approach Compare to the SEC’s?
Like the FCA, the SEC has softened its stance. Under the TRUMP administration, it reportedly dropped 60% of crypto-related enforcement cases. Both agencies now prioritize high-risk areas while cutting routine audits. The SEC’s recent pullback from aggressive oversight mirrors the FCA’s selective enforcement—a trend some attribute to shifting political winds.
What’s Next for UK Financial Regulation?
A new crypto asset regime kicks in by 2027, expanding the FCA’s oversight to non-financial conduct (e.g., workplace harassment). The agency will also supervise AML for professional crypto services. Lorraine Johnston of Ashurst LLP notes the FCA retains a "robust enforcement culture," but case numbers may keep falling. Meanwhile, Pallas Partners’ Trac Dovaston praises the focus on substantive cases over "fishing expeditions."
Frequently Asked Questions
Why did the FCA close so many investigations?
The FCA streamlined its operations to prioritize high-impact cases, citing efficiency gains and government pressure to support economic growth.
Will the FCA stop enforcing financial rules?
No—it’s focusing on severe misconduct, like AML breaches, while reducing lower-priority cases.
How does this affect crypto businesses?
With lighter oversight in the short term, firms may face stricter AML rules and conduct standards starting in 2026–2027.
