Reference Case Number: FOI11642
Freedom of Information: Right to know request:
Please provide:
- How many businesses have the FCA placed restrictions on their operations due to failing to comply with Consumer Duty regulations in 2024?
- How many investigations based on financial crime have been opened since 2022?
- Of this total, how many remain open and how many are now closed?
- Of those that are closed, what was the outcome?
FCA response:
We can confirm that we hold the requested information, which is set out below.
In instances where we have evidence that a firm is not meeting our standards, we may invite it to sign a voluntary requirement (VREQ) which prevents ongoing harm to consumers or markets. For example, where we have evidence confirming that a firm has inadequate systems and controls that indicate that its continued ability to conduct regulated activities presents significant risk, we may invite it to sign a VREQ that they will not accept new business until the issue is resolved. Where firms do not voluntarily agree to this requirement, we may decide to impose an Own Initiative Requirement (OIREQ) on the firm. More details on our approach to Supervision can be found here.
We have interpreted the first part of your request as relating to instances where restrictions were placed on firms by the FCA (OIREQ).
During the relevant period, an OIREQ was imposed on 1 firm where failure to comply with Consumer Duty regulations was identified as the primary regulatory issue of concern. We would note that requirements may be placed on firms where there are various issues of concern, including failures to comply with Consumer Duty regulations, but where a different regulatory issue was the primary cause of concern.
In response to the second part of your request, we would like to explain that we have interpreted your request as referring to instances where investigators have been formally appointed under any of the relevant subsections of section 168 of the Financial Services and Markets Act 2000.
We have interpreted your request as relating to those investigations where the primary regulatory issue identified was one of the following.
- Bribery and corruption controls
- Money laundering controls
- Misappropriation of client assets/funds
- Fraud - insurance fraud
- Fraud - mortgage fraud
- Fraud against consumer
Since January 2022, the FCA has opened 28 such investigations.
Of those 28 investigations, 5 have subsequently closed, and 23 remain open.
Of the 5 closed investigations, all were closed with no further action.