City fines fall to seven-year low despite history of debanking

The row between NatWest and Nigel Farage has prompted an urgent review by the regulator. Photo: Matthew Horwood/Getty Images Europe

Fines issued The Financial Conduct Authority (FCA) said it issued fines totaling £53 million in the year ended December. , marking a 75% decline on the £216 million total recorded in 2022.

This figure is the lowest since 2016, when the FCA imposed just £22 million in fines.

This year's findings come as the FCA faced intense pressure to use its powers to investigate possible customer debanking.

The row between NatWest and Nigel Farage over the closure of his Coutts account has prompted the regulator to carry out an urgent review whether banks are breaking the rules by refusing to open accounts for political reasons.

Chancellor Jeremy Hunt called on the FCA to take action. and said the agency could fine banks “very large sums of money” if they were found to have broken the rules.

However, the FCA subsequently found no evidence that any accounts were closed because for the client's political views. .

The level of FCA fines can vary dramatically from year to year due to the length of time it may take for a fine to be finalized.

In one case this year, the regulator fined former Barclays chief executive Jes Staley £1.8 million. for his links to sex offender Jeffrey Epstein, although he is not included in the 2023 total as the fine is being appealed.

One of the largest FCA fines of 2023 is the £11 million fine imposed on Equifax for non-compliance with the rules. regarding a cyber attack also linked to an incident in 2017.

A six-year FCA investigation ruled that the hack, which affected almost 14 million Britons, was “entirely preventable.”

Fine £17 million for ED&F Man Capital Markets, the largest this year, was also linked to a tax evasion trading scandal that spanned more than a decade.

As well as fines, the FCA can also impose financial fines that are not included in the total.

There have been a number of financial fines imposed this year on advisers who provided poor pension advice to members of the British Steel Pension Scheme, but these have not been paid by the FCA.