FCA Shifts Enforcement strategy, Closing Hundreds of Investigations Without Penalties
Primary Topic: United Kingdom Financial Conduct Authority (FCA) enforcement actions and strategic shifts.
Primary Keyword: FCA enforcement actions
Secondary Keywords: Financial Conduct Authority, UK financial regulation, regulatory investigations, Therese Chambers, Steve Smart, FCA strategy, financial crime, enforcement clearance, regulatory accountability.
Recent data indicates a significant shift in strategy at the United Kingdom’s Financial Conduct Authority (FCA), marked by a considerable increase in the closure of investigations without resulting in enforcement actions. According to reports from the Financial Times and Golden Ten Data, the FCA has closed 100 investigations in under three years without levying any penalties, bringing the number of ongoing investigations to its lowest level in nearly a decade. This represents the largest such “clearance” of cases since the FCA’s establishment in 2013.
This change in approach coincides with the appointments of Therese Chambers and Steve Smart as co-heads of the FCA’s enforcement department in April and June 2023, respectively. Under their leadership, the FCA has signaled an intention to prioritize investigations with possibly greater impact, even as the overall number of active cases decreases.
Between April and November of last year, the FCA completed 24 investigations. Of these, nine were closed without any enforcement action, while 15 resulted in penalties. Furthermore, the agency dropped 91 investigations over the two years leading to March 2025, also without pursuing enforcement. Combined with the investigations closed as Chambers and Smart assumed their roles, this totals 100 cases closed without repercussions.
The FCA’s shift in strategy has prompted questions regarding accountability within the financial sector. while the agency maintains that focusing on high-impact cases will ultimately be more effective, critics express concern that the closure of numerous investigations without penalties could embolden misconduct and erode public trust.
The FCA has not publicly detailed the specific reasons for closing these investigations, but the agency has stated its intention to streamline its processes and concentrate resources on the most serious breaches of financial regulations. this strategic realignment suggests a move away from a high-volume, lower-impact enforcement model towards a more targeted approach.
Sources:
* Golden Ten Data.(2026, January 2). British financial regulators “cleared cases” on a large scale, closing hundreds of investigations within three years without holding anyone accountable. https://www.goldten.com.tw/news/36419
* Financial Times (Reported by Golden Ten Data). (2026,January 2). (Accessed via Golden ten Data link above).