Reference Case Number: FOI12079
Freedom of Information: Right to know request:
1) The number of non-financial misconduct cases opened from 1 January 2023 to date – please provide the total number of firms and individuals affected, differentiating between the two;
2) The number of cases of non-financial misconduct cases closed from 1 January 2023 to date;
3) The number of cases of non-financial misconduct from 1 January 2023 to date which resulted in no action;
4) The number of non-financial misconduct cases from 1 January 2023 to date which resulted in enforcement action being taken, and the kind of action taken against them - please provide the total number of firms and individuals affected, differentiating between the two, and what sectors they operate in (i.e. asset management, wealth management etc.).
FCA response:
You asked for information relating to non-financial misconduct cases. On 5 March 2023 you confirmed that your request is for data across all sectors regulated by the FCA. Full details of your request can be found in Annex A below.
We have interpreted your request to relate to enforcement investigations where investigators have been formally appointed under any of the relevant subsections of section 168 of the Financial Services and Markets Act 2000.
Question 1.
None.
Question 2.
None.
Question 3.
None.
Question 4.
None.
The FCA remains committed to its work to tackle non-financial misconduct. It is important, however, to recognise that the FCA is not an alternative to criminal prosecution, a firm’s internal disciplinary processes or for proceedings through the Employment Tribunal. We can only take action to achieve or further one of our statutory objectives.
We have prohibited several individuals from working in the financial services industry in respect of non-financial misconduct (including cases where we have not needed to appoint investigators under s168 of FSMA). For example, in October 2024, we banned an individual who had been convicted of multiple criminal offences, but dishonestly declared in an application for approval submitted to the FCA that he had no convictions. In November 2024, we banned an individual who had been convicted of inflicting grievous bodily harm without intent, but deliberately failed to notify the FCA of his offending.
We also recently published a decision notice indicating that the FCA had decided to fine and ban Mr Odey. The FCA made findings that Mr Odey deliberately sought to frustrate Odey Asset Management LLP’s disciplinary processes into his conduct to protect his own interests. The decision notice has been referred to the Upper Tribunal, and therefore the findings are provisional and reflect the FCA’s belief as to what occurred.