On 12 July 2016, the FCA published its enforcement annual performance account for 2015/16, which is the FCA’s assessment of whether it is operating fairly and effectively in investigating suspected misconduct and in bringing criminal, civil and administrative proceedings where it is appropriate to do so.

Among other things, the report summarises some of the key outcomes the FCA achieved during 2015/16.

In particular, the report notes

1. the widening spectrum of the FCA’s work from unauthorised investment frauds to the first court-imposed civil penalties for market manipulation,
2. significant fines for poor controls in the conduct of foreign exchange business,
3. London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (EURIBOR) manipulation, and
4. a range of cases dealing with
   1. consumer credit,
   2. misselling issues and
   3. client money breaches.

Chapters 14 and 15 of the report provide a statistical overview of the FCA’s performance.

Specific areas covered by the report include:

1. Retail conduct. In 2015/16, 14% of retail related enforcement cases closed with no action being taken.
2. Wholesale conduct.
3. Market abuse.
4. Confiscation orders.
5. Unauthorised business. As a result of changes in pension regulations, the FCA is monitoring the market and the impact of those changes on behaviours, particularly relating to unauthorised pension introducers.
6. Early interventions.
7. Threshold conditions. The FCA expects the work of its team that takes action against firms that do not meet the threshold conditions to expand significantly (again) in 2016/17. This is as referrals of consumer credit firms further increase and as referrals of firms registered under the Alternative Investment Fund Managers Directive (2011/61/EU) (AIFMD) start.
8. The senior managers regime and senior insurance managers regime. Ensuring that senior management are held to account remains a key priority for the FCA.
9. The joint consultation with the PRA on proposals to implement the recommendations following HM Treasury’s review of enforcement decision-making at the financial services regulators, and Andrew Green QC’s report into the FSA’s enforcement actions following the failure of HBOS plc

Feedback on the report can be emailed to the FCA