Kinetic Partners’ research also found that market abuse was the second most cited offense among fines filed against either firms or individuals, numbering nine for the year.
“There has been a growing awareness of how significantly market abuse impacts institutions and consumers alike. As such, the FCA’s focus has been centred on the detection and prosecution of market abuse including insider dealing, trading and market manipulation,” said Monique Melis, global head of consulting at Kinetic Partners.
The most cited offense among fines was unfair treatment of customers, which accounted for ten fines. Despite fewer actions being taken against market abuse, such breaches accounted for a greater share of the sum total of fines than any other category of violation during that period.
In total, the FCA only handed down fines totaling £48,158,900 for breaches related to unfair treatment of customers.
“The key lesson from the FCA’s focus on market abuse is that firms must have robust central monitoring functions and compliance systems in place to ensure that both the firm and its employees are operating with integrity,” said Melis.
“It is of paramount importance that firms are vigilant about their internal monitoring and control mechanisms in order to maintain market confidence and ensure that any trading activities in which they engage are proper and clean.”