FCA cracks down on illegal promotions, market abuse, insider dealing and money laundering in first year of new strategy

The Financial Conduct Authority has published its Annual Report and Accounts 2025/26, marking the first year of its five-year strategy.

According to its Annual Report and Accounts published today, the FCA in the first year of its 5-year strategy,

• Led an international crackdown on illegal finfluencer promotions – resulting in 3 arrests and 650 social media takedown requests.
• Secured a combined 11 years in prison for 2 cases of insider dealing and money laundering.
• Fined 12 individuals a total of £1.77 million for market abuse offences.

The numbers show a

• Clear enforcement priority on unauthorised promotions and market abuse, executed both domestically and through international co-ordination.
• The volume of social-media takedown requests and
• The prison sentences for insider dealing send a direct signal that the FCA is prepared to use criminal routes where it judges the harm serious enough.

The detail of what the FCA actually delivered is set out below.

Key enforcement and financial crime outcomes

• International “week of action” on illegal finfluencer promotions (June 2025, involving nine regulators):
• 3 arrests, 6 criminal proceedings, 11 targeted warning or cease-and-desist letters, 50 warning-list alerts and 650 social media takedown requests.
• 17 criminal convictions secured (fraud, insider dealing, money laundering and DPA offences).
• Two individuals received a combined 11 years' imprisonment for insider dealing and money laundering.
• 12 individuals fined a total of £1.77 million for market abuse offences.
• 2,329 warnings issued about unauthorised or potentially scam firms in 2025 (up from 2,240 in 2024).
• Firms fined approximately £14.4 million for transaction reporting failures and control weaknesses.
• £42 million fine issued to Barclays for anti-money laundering failures.
• Number of customers removed as money mules rose 4.4% to 222,173 across 35 firms.

Consumer protection highlights

• Firm Checker tool (launched January 2025) used more than 1.9 million times; firm warning messages protected an average of 694 consumers each week after a 2026 advertising campaign (49% increase).
• Estimated £157 million a year in savings for consumers paying monthly insurance premiums via Consumer Duty fair-value rules.
• Mortgage reforms: after clarification of affordability checks, most lenders updated their approach, allowing borrowers access to up to £30,000 more.
• Final rules confirmed to support pensions and investment decisions (expected to benefit at least 18 million consumers over the next decade).
• Final rules issued for Buy Now Pay Later products ahead of the regime coming into force in July 2026.

Supporting growth and "smarter regulation"

• Nearly 50 pro-growth measures delivered in 2025.
• 132 applications received to the AI Supercharged Regulatory Sandbox; scale-up unit launched with the PRA.
• Two firms approved under the new private markets framework (PISCES), with two more in the pipeline.
• Expanded international presence (new offices in the US, Asia-Pacific and Singapore).
• Single digital entry point for regulated firms (81% user satisfaction); outdated reporting returns decommissioned for more than 90% of firms (£16 million annual saving in reporting costs).
• 43 portfolio letters replaced by 9 focused market reports.
• AI automation reduced handling time for simpler cases from up to 4 hours to about 6 minutes on average.

Ashley Alder (Chair) stated:

• "We have made a strong start to our 5-year strategy. We set out to focus our efforts where they matter most – protecting consumers, maintaining market integrity and supporting a competitive economy. The progress we've made in the first year demonstrates that a focused and decisive regulator delivers real benefits for consumers and supports growth."

Nikhil Rathi (Chief Executive) stated:

• "In the past year we've shut down scams, pursued those who abuse markets through the courts, helped hundreds of thousands of consumers access better financial products and cut the cost of regulation for tens of thousands of firms. We've made greater use of data and technology to detect harm earlier and expanded our international presence to support UK financial services. There is more to do, but this is a solid foundation."

Comsure view

The first-year numbers show a clear enforcement priority on unauthorised promotions and market abuse, executed both domestically and through international co-ordination. The volume of social-media takedown requests and the prison sentences for insider dealing send a direct signal that the FCA is prepared to use criminal routes where it judges the harm serious enough.

Firms should note the continued rise in scam warnings and the money-mule figures. Controls around financial promotions (especially those involving influencers or social media), transaction reporting, AML systems and the detection of mule activity remain high-risk areas. The Consumer Duty-related savings and product rule changes also reinforce that fair-value and outcome-focused assessments are now producing measurable regulatory outcomes.

The regulator is simultaneously trying to reduce administrative burden (digital entry point, fewer returns, AI case handling) while expanding its international footprint and innovation pathways. Whether the dual track of tougher enforcement plus lighter process for "good" firms holds will be tested in the remaining years of the strategy.

Source:

• FCA Press Release, first published 9 July 2026 https://www.fca.org.uk/news/press-releases/fca-cracks-down-illegal-promotions-and-market-abuse-first-year-new-strategy
• Full suite of related FCA publications released on the same day includes the Annual Report and Accounts 2025/26, Outcomes and metrics report, Secondary International Competitiveness and Growth Objective metrics, and others listed in the press release notes.