The Financial Conduct Authority has updated its enforcement criteria when deciding whether to investigate a firm or individual.
The FCA said that when deciding whether to investigate it will consider its aims and statuary objectives, the strength of the evidence and the purpose of taking enforcement action.
Georgina Philippou, acting director of enforcement and market oversight at the FCA, said: “Enforcement is not the only tool at our disposal where we see misconduct by firms or individuals, nor is it the most appropriate one to use in every case.
“Today’s publication will make our decision making process more transparent. Firms and the public will now have a clearer understanding of the questions we ask ourselves before we start a formal investigation.”#
The regulator set out three questions which it will consider when deciding whether to investigate:
1. Is an enforcement investigation likely to further the FCA’s aims and statutory objectives?
2. What is the strength of the evidence and is an enforcement investigation likely to be proportionate?
3. What purpose or goal would be served if the FCA were to take enforcement action in this case?