The UK Financial Conduct Authority (FCA) on 15 June proposed changes to its penalty policy for individuals, including a higher minimum fine in serious market abuse cases, after Upper Tribunal decisions in 2025 led to reductions in some penalties it had imposed.
In consultation paper CP26/19, the FCA proposes raising the minimum penalty for individuals in the most serious market abuse cases from £100,000 to £150,000, to account for inflation since 2010. The figure would then be updated automatically in line with CPIH inflation every two years from 1 May 2028.
RELEVANT INCOME AND DETERRENCE
The regulator also proposes clarifying how deferred bonuses, pay and shares are treated as relevant income when calculating penalties, in line with recent Tribunal decisions. Benefits earned during the period of misconduct but received afterwards would count, while benefits known never to be received would not. The FCA would be able to increase a penalty for deterrence where a firm has reduced an individual's income because of the misconduct.
The Tribunal decisions include the case of former Barclays chief executive Jes Staley, whose fine was reduced from £1.8 million to £1.1 million after the Tribunal ruled that deferred share awards later cancelled by Barclays should not have been included in his income, the Financial Times reported.
The FCA further proposes making clear that it may increase penalties for deterrent effect having regard to an individual's income and assets, and raising the serious financial hardship thresholds from £14,000 to £21,000 for annual income and from £16,000 to £24,000 for capital. Other proposals would allow more flexibility over who makes settlement decisions and extend the penalty framework to cryptoasset market abuse. The consultation closes on 10 August 2026.