Enforcement operations are FCA investigations relating to potential regulatory breaches or criminal offences. They do not include the more straightforward body of casework relating to the FCA’s Threshold Conditions, which are managed separately by the FCA and reported on separately in the Enforcement data (see further below). 

The highlights from the enforcement operations data are as follows:

Open cases:

• The number of open enforcement operations fell from 188 in 2023/24 to 130. A single “enforcement operation” may involve investigations into multiple firm(s) and/or individuals at any one time. The number of open enforcement investigations is therefore likely to be significantly higher than the 130 operations referred to in the data.
• The most significant reduction in open cases can be seen in regulatory operations (down to 54 from 91 in 2023/24) and dual track cases (down to 24 from 44 in 2023/24).
• There has been a slight increase in criminal investigations (up from 42 to 43 open cases) which indicates a continuing trend of pursuing criminal convictions.
• The data on enforcement operations does not specify the percentage of investigations opened against firms and individuals (this data is provided for the Threshold Conditions cases only).
• Limited data is provided on the subject matter of the investigations. The data is presented by reference to the FCA’s three strategic priorities (i)reducing and preventing financial crime, ii) strengthening wholesale markets; iii) and putting consumers’ needs first). The majority of operations opened in 2024/25 relate to financial crime, but no further details of the nature of the alleged misconduct/breaches are provided.
• The Enforcement data does not disclose how many open investigations involve international partners or the extent of the FCA’s cross-jurisdictional collaboration. While the FCA’s commitment to international engagement is clear from its public statements, the absence of quantitative data in this area limits the ability of firms and stakeholders to assess the practical impact of this work.

Duration of cases:

• The proportion of enforcement operations less than two years old increased to 51% (from 41% in 2023/24), with 83% of cases now less than four years old (up from 81% in 2023/24). This is a step in the right direction with respect to the FCA’s stated aim of conducting faster investigations.
• There are still eight enforcement operations which have been open for more than 60 months (down slightly from 11 last year). The FCA is working through a backlog of legacy cases, and it may therefore take a few years before the full impact of its new, more purposeful approach is evident in the statistics.

Closed cases:

• Although the number of enforcement operations that were closed has increased to 81 (from 60 in 2023/24), it is unclear how many of these were closed with or without action. We are therefore unable to assess how the historic statistic, that two thirds of enforcement cases were closed without further action, has shifted.

Total value of financial penalties:

• There is a 337% increase in the total value of financial penalties (from £42.5 million in 2023/24 to £186.4 million in 2024/25). While at first sight this does not align with the FCA’s commitment to support growth, the FCA has had a large number of legacy cases to conclude and the total value of financial penalties in 2023/24 was unusually low.

This casework relates to the FCA’s powers to use formal intervention tools (e.g. varying or imposing requirements on a firm’s regulatory permissions) and to support voluntary outcomes agreed by firms.

The 2024/25 data reveals an increase in voluntary outcomes (125 compared to 106 in 2023/24). The FCA notes in the report that this reflects its strategy of early engagement and encouraging firms to address concerns voluntarily. 

The number of own initiative outcomes (where the FCA imposes requirements on firms without agreement) fell to 10 from 25 in the previous year. The enforcement report states that “a few” of the 10 own initiative outcomes this year remain subject to challenge, which illustrates the additional complexity associated with the use of the FCA’s formal intervention powers.

These cases primarily relate to the FCA’s powers to cancel a firm’s authorisation/registration where it does not meet the minimum standards to remain authorised (for example, where a firm has repeatedly failed to pay its annual fee or submit regulatory returns). 

The data indicates the continued trend of these cases being dealt with more efficiently since the FCA has streamlined its processes for managing this caseload.

The FCA obtained three new restraint orders during 2024/25. These are used by the FCA to preserve assets for future confiscation orders in criminal proceedings and therefore signal the FCA’s continued focus on securing criminal convictions. 

We previously commented on the FCA’s strategy to reduce and prevent financial crime. In 2024/25 the FCA obtained six confiscation orders, up from only two confiscation orders in 2023/24. There was also a notable increase in the total value of the confiscation orders, up from only £0.9m in 2023/24 to £6.88m in 2024/25. The use of confiscation orders aligns squarely with the commitment to “impactful deterrence”. 

Overall, the Enforcement data presents a positive picture of progress in the right direction towards a quicker and more impactful FCA enforcement function. It should, however, be read with a degree of caution in light of the nuances noted above in respect of the underlying data set.