pc
nid 93788
Jul 07, 2026
csoo@vixio.com
United Kingdom
Financial Conduct Authority
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2387 charsFinancial Conduct Authority Publishes Second Enforcement Watch Newsletter Covering Consumer Duty Supervision and Enforcement
On June 4, 2026, the Financial Conduct Authority (FCA) published the second edition of Enforcement Watch, its newsletter covering insights and themes from enforcement work. The update focuses on the FCA's approach to supervising and enforcing the Consumer Duty, which the FCA introduced three years prior.
The FCA outlined its enforcement activity regarding the Consumer Duty, reporting 11 open investigations examining potential breaches. The first investigation opened in August 2024, with investigations steadily increasing since then. The FCA's approach extends beyond enforcement powers to include publishing examples of good practice, conducting multi-firm thematic assessments, and commissioning skilled person reviews. The FCA has commissioned approximately 30 skilled person reviews referencing the Duty since its introduction. Last financial year, the FCA intervened 382 times through assertive supervision, ranging from conversations to imposing requirements on firms. The FCA distinguishes between supervisory interventions and formal enforcement investigations, using interventions to address harm before escalating to enforcement where serious misconduct is detected and enforcement is deemed necessary, proportionate, and likely to create industry-wide deterrence.
The 11 open investigations span insurance, pensions, wealth management, consumer investments, peer-to-peer lending, and claims management sectors. Recent supervisory interventions include requiring an insurance firm to provide £200 million in redress to approximately 270,000 motorists following vehicle valuation reviews, and imposing voluntary requirements on claims management companies and wealth management firms. The FCA has also announced two enforcement investigations publicly into claims management companies operating in the motor finance sector: The Claims Protection Agency Limited (announced January 2026) and Consultation Claims Limited (announced June 4, 2026), allowing customers to consider their options regarding complaints.
The FCA emphasised its expectation that firms consider customer outcomes and put customers' interests at the heart of their activities under Principle 12. The FCA will act where firms fail to meet this standard.
REFERENCES:
Financial Conduct Authority. (2026). Enforcement Watch 2. Retrieved from https://www.fca.org.uk/news/news-stories/enforcement-watch-2
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2289 charsUK's Financial Conduct Authority Publishes Enforcement Insight Covering Consumer Duty Supervision
On July 7, 2026, the Financial Conduct Authority (FCA) published the its newsletter covering insights and themes from enforcement work. The update focuses on the FCA's approach to supervising and enforcing the Consumer Duty, which the FCA introduced three years prior, reporting 11 open investigations examining potential breaches.
The 11 open investigations span the financial services sector and include the following:
An investigation into a firm in the wealth management sector, where the FCA are concerned about financial promotions, high fees and the quality of engagement with the regulator. The FCA opened the investigation after a supervisory intervention aimed at stopping ongoing harm; and are looking into whether consumers may have paid more than is fair for what they received, potentially leaving them unable to save or invest more for their future. The FCA is also investigating whether those with vulnerable characteristics experienced heightened and/or foreseeable harm. The investigation is therefore centred around price and value, as well as consumer support.
An investigation into a peer-to-peer lending platform. It is focused on the information provided to consumers, which included misleading or unclear communications, and financial promotions about products which prevented consumers from making an informed decision on how to invest their money. It also includes considering potentially poor conflicts of interest management over loans made to certain borrowers.
An investigation into a small Independent Financial Advisor over whether it breached the Consumer Duty by not carrying out or documenting assessments to ensure it provided fair value to its customers. The firm agreed to several restrictions, including remediation steps, and agreed to cease regulated activity.
The FCA open investigations where its Supervision team has detected serious misconduct and consider an enforcement investigation necessary, proportionate, and likely to create impactful deterrence across the industry. In assessing whether to open an enforcement investigation, the FCA considers factors including its regulatory priorities, the seriousness of the misconduct, the harm (or potential harm) it has caused, and whether other regulatory responses might be more effective.