FCA steps up enforcement against scams and market abuse, expands regulatory reforms

The UK's Financial Conduct Authority (FCA) has stepped up its enforcement efforts against financial crime while advancing a series of regulatory reforms aimed at strengthening consumer protection, market integrity and the UK's financial services sector.

In 2025, the FCA issued 2,329 warnings against unauthorised or potentially fraudulent firms, up from 2,240 the previous year, and secured 17 criminal convictions involving insider dealing, fraud, money laundering and other offences. Two individuals received a combined 11-year prison sentence for insider dealing and money laundering, while 12 others were fined a total of £1.77 million for market abuse. The regulator also imposed approximately £14.4 million in fines for transaction reporting failures and control weaknesses, alongside a £42 million penalty against Barclays for anti-money laundering failures.

The FCA also intensified its fight against online investment scams. A coordinated international operation targeting illegal finfluencers, involving nine overseas regulators, resulted in three arrests, six criminal proceedings, 11 warning or cease-and-desist letters, 50 public warnings and 650 social media takedown requests.

Alongside enforcement, the regulator continued rolling out key regulatory initiatives. These included final rules for Buy Now Pay Later (BNPL) products ahead of the new regime taking effect in July 2026, mortgage affordability reforms designed to improve borrowing flexibility, and the approval of the first firms under the PISCES private markets framework. The FCA also expanded its innovation agenda by receiving 132 applications to its AI Supercharged Regulatory Sandbox.

The regulator said it will continue prioritising action against financial crime while introducing reforms that support innovation, strengthen market oversight and enhance consumer protection across the UK's financial services industry.