Tue, May 18, 2021

The Rise in Scams and the Threat to a Legitimate Financial Services Industry

View All Articles

The FCA executive director of enforcement and market oversight, Mark Steward, delivered a speech at the City & Financial Global’s FCA Investigations and Enforcement Summit.

Mr. Steward stated that the FCA has a role to play in protecting consumers from unauthorized activities and it has made improvements to address scams as they are happening. The FCA proactively monitors the internet to capture suspicious advertising within 24 hours after it first appears.

While the FCA does not have any general power or authority to prosecute fraud, it has statutory powers over the use of false or misleading statements in relation to securities, provided that the investment product is not outside the financial promotions perimeter. The FCA remains very active and engaged in tackling investment fraud in the UK and has issued 623 specific warnings so far this year, which is up more than 100% from 2020 figures.

Regulated firms should also do more to prevent harm. The FCA urges all financial service firms to ensure that they are not dealing with firms on its warning list. Those that have dealings with such firms could face action from the FCA.

To read the full speech click here.

Financial Services Compliance and Regulation

End-to-end governance, advisory and monitorship solutions to detect, mitigate, drive efficiencies and remediate operational, legal, compliance and regulatory risk.