A law firm has called into question the effectiveness of the regulator's investigations tool, which, paid for by the firms probed, led to enforcement action in only 2% of cases last year.
Regulatory law firm Reynolds Porter Chamberlain (RPC) said the Financial Conduct Authority (FCA) commissioned 44 so-called section 166 reviews in the year to last September but only one was referred to enforcement as a result. This compared to three of 75 reports - an enforcement rate of 4% - in the preceding year. RPC's figures were obtained from the regulator through a freedom of information request. s166 reviews are commissioned by the Financial Conduct Authority (FCA) when it is concerned about a firm's activity in areas such as governance, controls and risk management, conduct...
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