Information on investigations into breaches under SM&CR

Reference Case Number: FOI11771

Freedom of Information: Right to know request:

Please provide information about investigations involving individuals holding a Senior Management function (as defined under the SM&CR) where the data relates only to investigations involving breaches under the SM&CR, and for information about investigations involving non-financial misconduct.

FCA response:

1. The number of active FCA enforcement investigations into individuals.

We currently have 26 open investigations into individuals for potential SM&CR breaches.

2. How many of those active investigations are into Senior Managers as defined in the Senior Managers & Certification Regime.

Of those 26 investigations, 23 relate to individuals classed as Senior Managers.

3. The number of investigations that relate to Senior Managers that have been opened since 1 January 2022, broken down by calendar year.

Year	Number of investigations opened
2022	12
2023	11
2024	1

4. The number of investigations that relate to Senior Managers that have been closed since 1 January 2022, broken down by calendar year.

Year	Number of investigations closed
2022	6
2023	9
2024	16

5. Of the number of investigations that relate to Senior Managers that have been closed since 1 January 2022, the number that resulted in:

Investigation outcome	Number
Financial Penalty / Public Censure	2
Prohibition	0
Undertaking	0
No formal enforcement action	28

These numbers exclude the 2 cases where potential SM&CR breaches were removed during the course of the investigation.

6. A breakdown, by number, of the active investigations that relate to Senior Managers according to their primary recorded issues.

Primary issue	Total
CASS	1
Fraud against consumer	2
Individual – Honesty, Integrity & Reputation	7
Individual – Non-Disclosure	1
Individual – Non-financial misconduct	1
Individual – Senior Manager failings	3
Misleading statements	3
Systems and controls	3
Threshold Condition – Suitability	2

7.a . how many investigations the FCA opened into non-financial misconduct in 2022 and 2023. Please provide a breakdown by year of opening.

We opened 2 investigations in 2022.

We are unable to provide you with the number of such investigations opened in 2023 as we are of the view that disclosure would be likely to prejudice the exercise by the FCA of its regulatory functions under FSMA, and therefore, for the reasons set out in Annex A below, the exemption under section 31 (Law enforcement) of FOIA applies.

7.b how many of those investigations focus on individuals classed as Senior Managers.

Of the cases opened, 1 relates to an individual classed as a Senior Manager.

7.c how many active investigations the FCA currently has into non-financial misconduct by: i. individuals classed as Senior Managers; ii. Certified Persons; and iii. other staff subject to the FCA's Code of Conduct;

We currently have 1 open enforcement investigation responsive to this question. For further details, please see the letter from Nikhil Rathi to the Treasury Select Committee dated 3 July 2023 available at the following link: https://committees.parliament.uk/publications/40749/documents/198516/default/[1].

7.d how many investigations into non-financial misconduct the FCA has discontinued with no enforcement action being taken since 2018 (broken down by year of closing).

Three investigations were closed in 2023 with no enforcement action being taken.

Additionally, it may be of interest to you in respect of our broader work on non-financial misconduct that we have taken action to prohibit 6 individuals from working in the financial industry, following findings that they are not fit and proper. Each of them had been convicted of serious non-financial indictable offences while working in financial services. The details of these actions can be found using links below:

Supporting document

FOI11771 Annex A[8]

Date of Release: 22/11/2024

Information on investigations into breaches under SM&CR - November 2024