Less is more at the FCA

• The FCA has shifted to a ‘quality over quantity’ enforcement approach under new leadership, pursuing fewer but faster, better-resourced investigations, which appear to be improving efficiency, deterrence, and confidence in enforcement outcomes.
• While this approach is broadly positive, concerns remain about potential regulatory overreach—particularly as the FCA expands into areas like non-financial misconduct—requiring firms to stay alert to evolving expectations.

The enforcement division of the Financial Conduct Authority (FCA) started 2026 a very different organisation from only a few years ago. Under its previous head of enforcement, the regulator was known for opening large numbers of long-lasting and broad-ranging investigations; since the appointment of the new joint heads of enforcement, Therese Chambers and Steve Smith, in the summer of 2024, the regulator’s message to market is that there will be fewer, shorter investigations. The logic is that fewer, faster outcomes would provide a greater deterrent effect.

As we approach summer