CP26/19: Changes to our penalty and decision-making policies

Read CP26/19

Why we are consulting

We want to update the DEPP to keep our policy current and consistent with how we work in practice.

These changes will improve transparency and consistency. They will help us act faster, deter misconduct and maintain confidence in UK markets.

What we are changing

We propose a small number of targeted updates to our penalty and decision-making policies:

• Market abuse: for the most serious cases, raising the minimum for individuals from £100,000 to £150,000 to account for inflation.
• Deterrence for wealthier individuals: making clear we may increase penalties for deterrent effect, having regard to income and assets.
• Penalties for individuals – relevant income: clarifying how we treat deferred bonuses, pay and shares, in line with recent Tribunal decisions.
• Serious financial hardship thresholds: raising income and capital thresholds to reflect living costs and update them over time.
• Settlement decision-makers: allowing more flexibility in who makes settlement decisions in some cases.
• Cryptoasset market abuse regime: consequential amendments: extending our penalty framework to cover cryptoasset market abuse and reflect new powers under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026.

Who this is for

• Individuals subject to FCA enforcement action, including senior managers, directors and employees of authorised firms.
• Individuals involved in market abuse, including those outside regulated firms.
• Legal, compliance and enforcement professionals.
• Industry bodies and advisers responding to FCA consultations.

Next steps

We welcome your feedback on these proposals by 10 August 2026.

Use our online response form or email [email protected].

You can also write to Enforcement Law and Policy, FCA, 12 Endeavour Square, London E20 1JN.

What we will do next

• Review all responses and publish our feedback.
• Decide whether to make the proposed changes.
• Update the DEPP if we proceed.

Background

DEPP sets out how we make enforcement decisions and calculate financial penalties, including a 5-step process based on seriousness, deterrence and mitigating factors.

We last updated key thresholds in 2010. Since then, inflation, Tribunal decisions and new cryptoasset powers have changed the landscape.