FCA Yearly Report Examined and Interpreted
The Financial Conduct Authority (FCA) has published its annual report for the year 2024/25, highlighting its focus on using data and technology to combat financial crime and ensure compliance in the financial services industry.
In the report, the FCA outlines its strategic use of data analytics to deliver impactful deterrence and prompt enforcement results. This approach is aligned with the UK Government’s growth and regulatory strategy. The regulator reports a strong return on investment for its interventions, with between £7.9 and £8.6 of benefit for every pound spent.
The FCA’s efforts in 2024/25 also saw a significant increase in the number of firms whose authorizations were cancelled. Over 1,500 firms had their authorizations revoked, which is 20% more than in 2023 and more than triple the number in 2021.
The report also details the FCA’s engagement in an open finance sprint involving over 110 stakeholders across financial services and technology sectors. This collaboration developed practical data-sharing use cases to enhance regulatory oversight and customer benefits.
The FCA, alongside the UK National Crime Agency (NCA) and other bodies, has identified nine system priorities targeting economic crime areas such as money laundering, fraud, and exploitation of financial systems. This public-private collaboration aims to enable regulated firms to optimize resource allocation for compliance and crime prevention.
The FCA’s enforcement actions were not limited to large-scale operations. In 2024, the regulator intervened to ensure almost 20,000 non-compliant financial promotions were amended or withdrawn by authorized firms, compared to under 600 in 2021.
The FCA also took action to protect social media users from illegal financial promotions by unauthorized 'finfluencers'. Over 50 apps were removed from Google Play and the App Store as a result of the FCA’s collaboration with big tech platforms.
The report also details a case of misconduct involving James Lewis, the former CEO of Shard Capital Partners. Lewis was fined £120,300 and banned by the FCA for providing incorrect information about clients' cash purportedly held by Shard.
Sheila Cameron, CEO of the Lloyd's Market Association, responded to the report, welcoming the publication of the FCA's non-financial misconduct survey. Imogen Makin, counsel at WilmerHale, commented on the FCA’s Annual Report 2024/25, stating that the FCA’s focus on assertive supervision is evident in the enforcement data published in the report.
The report was published by the Parliament Street think tank. The FCA’s 2024/25 report focuses on leveraging advanced data governance frameworks, innovative technology collaborations, and robust enforcement analytics to strengthen financial crime prevention and compliance within the financial services industry. These efforts contribute to increased transparency, efficiency, and consumer protection aligned with evolving regulatory and technological landscapes.
[1] Source: FCA Annual Report 2024/25 [2] Source: FCA Annual Report and Accounts 2020/21 [3] Source: FCA 2024/25 Enforcement and Financial Crime Data [4] Source: FCA 2024/25 Business Plan [5] Source: HM Treasury Report: Regulatory Policy Committee's Annual Report 2024
- The Financial Conduct Authority (FCA) emphasized the importance of compliance in the financial services industry by leveraging advanced data governance frameworks and technology, as detailed in their 2024/25 report.
- The FCA's strategic use of data analytics and technology in 2024/25 led to a significant increase in the number of cancelled firm authorizations, with over 1,500 cancellations, according to the FCA's Annual Report and Accounts 2020/21.
- The FCA's focus on assertive supervision and enforcement was evident in the high number of non-compliant financial promotions amended or withdrawn by authorized firms, as reported in the FCA 2024/25 Enforcement and Financial Crime Data.
