On 28 April 2025, Therese Chambers, the Joint Executive Director of Enforcement and Market Oversight at the FCA, delivered a speech, outlining the FCA's strategic approach to tackling market abuse. She emphasised the "three Ps": being predictable, proportionate, and purposeful, and how the FCA's work on market abuse permeates all areas of the FCA's recently launched five year strategy.
Predictable approach
Ms Chambers underscored the importance of transparency and consistency in the FCA's decision-making and communication within the industry, in particular in relation to what information the FCA cares about and needs from market participants. The speech also referred to reducing the amount of information sent to market participants, by streamlining communications and communicating where it matters.
Proportionate measures
Recognising firms as the first line of defence against market abuse, Ms Chambers explained that the FCA is committed to reducing the reporting burden by asking only what is necessary and will be utilised, while simultaneously safeguarding market integrity. A consultation paper aimed at streamlining transaction reporting is expected to be published later this year.
Purposeful intent
Ms Chambers emphasised the need for clear intent in market abuse work, focusing on meaningful outcomes. The FCA is prepared to intervene when firms fail to meet their responsibilities, utilising sophisticated tools to detect and disrupt bad actors before significant harm occurs. An emphasis was also placed on firms that provide trading services having adequate systems and controls to identify and report market abuse. Of particular note was Ms Chambers' reference to focusing enforcement on "cases that bring the most impactful deterrence", and where full investigation isn't warranted, the FCA will take early alternative action to prevent potential harm. There was also an emphasis on the importance of Suspicious Transaction & Order Reports (STORs) as a source of information relevant to market abuse, and the example was given of the ongoing criminal trial of Redinel Korfuzi and others who are alleged to have conspired to commit offences of insider dealing, which started with a STOR.
Priorities in tackling market abuse
Ms Chambers identified the FCA's priorities in tackling market abuse: i) a focus on organised crime groups, which she said account for around 25% of all STORs (although it is unclear how the FCA can know this); ii) addressing 'strategic leaks' and unlawful disclosure; iii) a focus on Fixed Income, Currencies and Commodities markets; and iv) strengthening the FCA's international engagement and strategy.
A change of approach?
Much of what the FCA has said is consistent with recent publications regarding market abuse. For example, recent FCA business plans have also noted the FCA's commitment to taking assertive action on market abuse. Similarly, Market Watch 79 related to the importance of effective surveillance by firms. However, there appears to be a change of emphasis, in particular:
- consistent with the FCA's aim to reduce regulatory burden as part of its new growth agenda, the focus is on requesting only what is needed from firms; and
- there is clearly a significant focus on insider dealing, which can be contrasted with recent enforcement notices, which have typically focused on other aspects of market abuse, and rarely relate to the use of inside information (with the notable exception of the Andras Sebok Final Notice).
Finally, the reference to focusing on cases that bring the most impactful deterrence is consistent with recent messaging from the FCA, and gives rise to interesting considerations regarding the enforcement process. For example, if there are significant delays in progressing enforcement matters, can it be said that they are achieving 'impactful deterrence'? It seems that this commitment is consistent with an overall approach of being more selective in which matters will be identified for enforcement, and those which can be dealt with through other means, such that the overall number of cases in enforcement may reduce significantly. This should have the advantage of targeting FCA resources and ensuring outcomes are delivered in a more timely manner.