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Enforcement Watch Roundup

Issue 45: January 2025

Enforcement Watch Roundup

Editor's Note

Adam Epstein - Mishcon de Reya

Welcome to the 45th issue of Enforcement Watch, our three times a year round up of enforcement activity and look ahead.

The last 4 months have been reasonably heavy with interesting enforcement outcomes. From the FCA successfully (mostly) appealing to the Court of Appeal in one case, but doing rather less well in an Upper Tribunal case about penalty, there has been quite a variety of noteworthy cases.

News
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26 November 2024: Macquarie fined £13 million for control failures

The FCA has fined the London Branch of Macquarie Bank Limited for serious control failures that enabled a relatively junior trader to conceal a large number of fictitious trades. Macquarie settled early and therefore qualified for a discount of 30%. Without this, the fine would have been in excess of £18 million.

News
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5 December 2024: Tribunal makes directions in upcoming Staley case

As is well known, Jes Staley (former CEO of Barclays) has made a reference to the Upper Tribunal following a Decision Notice against him by the FCA. That Decision Notice set out the FCA's view, which in summary was that Mr Staley had acted recklessly and with a lack of integrity in approving a letter sent to the FCA by Barclays, as the FCA said it contained two misleading statements.

News
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10 January 2025: Upper Tribunal reduces FCA fine of Arian Financial LLP by over 60%

The FCA has fined Arian Financial LLP (Arian) £288,962.53 in respect of deficiencies in its systems and controls against financial crime. However, the Final Notice follows an Upper Tribunal judgment in which the proposed fine, as set out in the Decision Notice, was reduced from £744,745. The judgment is considered further below.

On the Horizon

News
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25 October 2024: Findings of the FCA's culture and non-financial misconduct survey

On 25 October 2024, the FCA published the findings of its culture and non-financial misconduct ('NFM') survey. The results followed the FCA's February 2024 survey of 1,028 regulated wholesale firms (insurers, market intermediaries, banks and brokers) asking about recorded incidents of non-financial misconduct in 2021, 2022 and 2023.

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