The U.K. financial regulator’s move towards “impactful deterrence” could see smaller and mid-size firms come increasingly under the spotlight as the watchdog aims to tackle market-wide concerns instead of primarily focusing on large players capable of doing the most harm.
Experts also warn that while the change in policy is likely to result in a rise in lower-level fines, more firms are likely to experience an uptick in compliance costs as the Financial Conduct Authority (FCA) raises its expectations about the level of disclosure and co-operation necessary to offset an investigation or sanction.
