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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
"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 Kinetic Partners.
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
"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."