According to regtech firm Steeleye's annual Financial Services Fine Tracker, enforcement actions surged in the US and UK in 2024.
"In many ways, 2024 was quite exceptional from a regulatory standpoint," said Matt Smith, CEO and Co-Founder of SteelEye. “Not only did US regulators report record-breaking enforcement actions, but their British counterpart shifted up a gear with regards to doling out penalties.”
In the US, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) reported a record $25.3 billion in enforcement actions in 2024, consisting of fines, restitution, and disgorgement. The regulators also continued their crackdown on the use of unauthorized communication channels. That action by the SEC alone has led to over $2 billion in fines for more than 100 firms since December 2021.
The UK Financial Conduct Authority (FCA), for its part, levied £176 million in fines in 2024, more than triple its total from the previous year. Notably, while there has been much media coverage regarding the FCA's own probe into off-channel communications, the regulator has yet to issue any related fines. However, its zealous approach to enforcement in 2024 may be a "sign of what's to come in 2025 if [its] instant messaging investigation intensifies," Smith said.
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