The UK’s Financial Conduct Authority (FCA) has reduced its enforcement activity and closed 100 of its active investigations. Regulatory authorities like the SEC and FCA are changing their focus to higher-impact cases and being selective about their enforcement due to reasons like government pressure to promote business practices and help the economy, and crypto-friendly political administrations. Is the FCA scaling back its activity? The UK’s Financial Conduct Authority has dramatically reduced its enforcement activity, closing 100 investigations without taking any action in less than three years. Since the FCA’s establishment in 2013, this is the largest number of investigations they’ve ever closed, bringing the number of active investigations down to 124 as of October, nearly half the 230 cases they were handling in 2022. When Therese Chambers and Steve Smart became co-heads of the Financial Conduct Authority’s enforcement division in April and June 2023, they began switching the focus to fewer investigations, but they ensured the cases they pursued had an impact. Between April and November of last year, the FCA completed 24 investigations, with nine closed without enforcement and 15 resulting in action. In March 2025, the FCA launched just 23 new investigations, compared to previous years when it regularly opened more than 50. City lawyers representing firms in FCA cases say it now focuses on clear-cut matters where enforcement outcomes are more certain. Despite handling fewer cases, in 2024, the FCA announced 41 enforcement actions, and 33 in 2025. Both were more than the historic annual average of 20 to 25. The authority’s biggest fines last year targeted anti-money laundering violations, including a £44 million penalty for Nationwide Building Society and £39 million for Barclays Bank. Last year, seven of the FCA’s investigations reached outcomes within 16 months of launch, compared to a historical average of 42 months. How does the UK FCA compare to the US SEC? The FCA’s approach is similar to developments across the Atlantic, where the U.S. Securities and Exchange Commission is also pulling back on strict oversight. Cryptopolitan previously reported that under Trump’s administration, the Securities and Exchange Commission had dropped or paused approximately 60% of the enforcement cases it had against crypto companies. The SEC has also scaled back its audit inspections and enforcement actions, representing a significant departure from its once aggressive regulatory stance. The UK government has been pushing the Financial Conduct Authority and other financial regulators to ease business restrictions to support the country’s struggling economy. Both the FCA and the SEC have framed the changes to their approach as efficiency improvements. The FCA emphasizes it continues taking action against “the most egregious misconduct,” while the SEC argues it’s focusing resources on areas of greatest risk. Despite what seems like weakening supervision, a new regulatory regime for cryptoasset providers will take effect in 2027, with rules covering non-financial misconduct like bullying and harassment to begin in 2026. The FCA is also set to be in charge of supervising anti-money laundering in professional services. Lorraine Johnston, a financial regulation partner at law firm Ashurst, noted that while the FCA maintains “quite a strong enforcement culture,” investigation numbers will likely continue declining. Tracey Dovaston, a partner at law firm Pallas, views the changes positively and noted that cases are no longer being opened “merely for diagnostic purposes.” She maintains “quite a strong enforcement culture,” and investigation numbers will likely continue declining. Tracey Dovaston, a partner at law firm Pallas, views the changes positively and noted that cases are no longer being opened “merely for diagnostic purposes.” nostic purposes.” Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
