Welcome to the 48th issue of Enforcement Watch, our three-times-a-year roundup of enforcement activity and look ahead.
The past four months have seen the FCA flex its enforcement muscles. The headline action: a £44 million penalty against Nationwide for AML systems failures. Familiar issues, but a penalty scale that underscores regulatory priorities. Once again, the FCA applied a proportionality adjustment without showing its workings.
The regulator is also expanding its use of criminal powers, securing its first data protection prosecution and maintaining pressure on insider dealing. Two significant disclosure decisions – on cross-border confidentiality obligations and collateral use of documents in tribunal proceedings – have important implications for firms facing regulatory scrutiny.
Looking ahead, the FCA's December proposals for comprehensive cryptoasset regulation (effective 2027) signal a fundamental shift, whilst final guidance on non-financial misconduct raises the question: will it actually change enforcement practice?
In this edition, we cover these developments and more, including essential analysis for regulated firms navigating this evolving landscape.