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FCA market abuse fines top £340m in 2013
07 August 2014
Kinetic Partners warn firms to be vigilant in monitoring compliance
In 2013 the FCA fined firms and individuals a total of
£346,373,924 for market abuse related breaches, according
to research by Kinetic Partners.
Kinetic Partners' research also found that market abuse was the
second most cited offense among fines filed against either
firms or individuals, numbering nine for the year.
"There has been a growing awareness of how significantly market
abuse impacts institutions and consumers alike. As such, the
FCA's focus has been centred on the detection and prosecution
of market abuse including insider dealing, trading and market
manipulation," said Monique Melis, global head of consulting at
The most cited offense among fines was unfair treatment of
customers, which accounted for ten fines. Despite fewer actions
being taken against market abuse, such breaches accounted for a
greater share of the sum total of fines than any other category
of violation during that period.
In total, the FCA only handed down fines totaling
£48,158,900 for breaches related to unfair treatment of
"The key lesson from the FCA's focus on market abuse is that
firms must have robust central monitoring functions and
compliance systems in place to ensure that both the firm and
its employees are operating with integrity," said Melis.
"It is of paramount importance that firms are vigilant about
their internal monitoring and control mechanisms in order to
maintain market confidence and ensure that any trading
activities in which they engage are proper and clean."