Financial Crime World

FCA and PRA Crack Down on Financial Firms for Violations

London, UK - The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have imposed significant fines on several financial firms for violating regulations and laws. In 2017, Deutsche Bank AG was hit with a £125 million fine for failing to report suspicious transactions.

Enhanced Protections for Retail Clients

From 2019, retail clients will receive enhanced protections through the ring-fencing regime, which separates core banking services critical to individuals and small- and medium-sized enterprises from wholesale and investment banking services. This move aims to insulate retail customers from the potential failure of investment banking entities.

Cross-Border Regulation Under Review

The UK’s departure from the EU has raised concerns about cross-border regulation. The FCA and PRA are working to ensure that financial firms can continue to operate smoothly across borders. The authorities have announced plans to establish a new framework for regulating financial institutions operating in the UK, which will include stricter regulations on foreign firms.

International Standards

The UK is committed to implementing international standards in financial regulation. The FCA and PRA work closely with European and international counterparts to:

  • Enhance cooperation
  • Share best practice
  • Discuss issues of common interest

The authorities are also engaged in efforts to promote global regulatory convergence and coordination.

In light of the Brexit referendum, there is uncertainty in the financial services industry. The UK government has indicated that it intends to reach agreement on an “implementation period” to allow for preparation for new arrangements following the UK’s departure from the EU. Financial institutions are considering restructuring their EU business or seeking deposit-taking or other licences in multiple EU jurisdictions.

Conclusion

The FCA and PRA remain committed to maintaining financial stability and protecting consumers. As the regulatory landscape evolves, firms must adapt to changing requirements and ensure compliance with regulations aimed at safeguarding the integrity of the financial system.