FCA Pledges to Leverage Technology in Crackdown on Abnormal Trading

The UK’s Financial Conduct Authority (FCA) has announced its commitment to utilizing technology to tackle abnormal trading as part of its newly outlined five-year strategy. The regulator has set four key priorities to guide its approach: protecting consumers, combating financial crime, fostering growth, and evolving into a more advanced regulatory body. A core focus of its financial crime agenda will be the implementation of new technologies to identify illicit market activities more efficiently.

“Over the last two years, we’ve charged more people with criminal offences than ever before, and we are concluding enforcement investigations faster,” the FCA stated. “We are harnessing technology to better identify potentially abnormal trading in our markets as well as scams targeting the public.”

By 2030, the FCA aims to enhance its capabilities in detecting unusual trading patterns and financial misconduct. Additional priorities under its financial crime agenda include curbing the rise in investment fraud cases and associated losses, as well as addressing the increasing prevalence of authorized push payment (APP) fraud.

FCA Chief Executive Nikhil Rathi reflected on the regulator’s progress and its ambitions for the future. “We are committed to going much further to meet the scale of change we are facing over the next five years,” he stated. “This strategy sets out our priorities, how we’ll become more efficient and effective, and the choices that shape the financial system.”

“Our four priorities reinforce one another. We look forward to collaborating with our partners as we become a smarter regulator, support growth, help consumers, and fight crime,” he added.

The FCA also emphasized the critical role of international cooperation in addressing financial crime, recognizing that bad actors operate beyond regulatory jurisdictions and national borders. “We must also be a good partner for other agencies who tackle crime. Criminals do not respect regulatory remits or national borders,” the regulator asserted. “We must draw on strong relationships with domestic law enforcement, regulators, and international counterparts to share intelligence and coordinate action.”

Another key focus for the FCA is fraud prevention, particularly as it pertains to financial firms’ responsibilities in vetting customers. The regulator recently issued warnings to companies that fail to conduct real-time checks, underscoring the importance of proactive risk mitigation.

Consumer awareness also remains a central pillar of the FCA’s strategy. “We want consumers to have the tools they need to protect themselves. We will continue to drive awareness of investment and APP fraud,” the authority stated. “By increasing our alerts of potential scams and developing new ways to get these to consumers, we will arm people with more information to avoid being tricked out of their money.”

With its ambitious plan for the next five years, the FCA is positioning itself as a more technologically adept and internationally coordinated regulator, dedicated to ensuring market integrity and consumer protection.

By fLEXI tEAM