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FCA consults on raising penalty thresholds

By Beth Brearley, 16 Jun 26

The watchdog said amending the DEPP will help it deter misconduct

The FCA has launched a consultation on changes to its Decision Procedure and Penalties Manual (DEPP) to improve transparency and consistency.

The watchdog said amending the DEPP will help it act faster, deter misconduct and maintain confidence in UK markets.

Those affected by the changes include individuals subject to FCA enforcement action – including senior managers, directors and employees of authorised firms, individuals involved in market abuse – including those outside regulated firms, legal, compliance and enforcement professionals, and industry bodies and advisers responding to FCA consultations.

The targeted updates include:

  • Market abuse: for the most serious cases, raising the minimum for individuals from £100,000 to £150,000 to account for inflation

  • Deterrence for wealthier individuals: the FCA may increase penalties for deterrent effect in line with income and assets

  • Penalties for individuals – relevant income: the regulator is clarifying how it treats deferred bonuses, pay and shares, in line with recent Tribunal decisions

  • Serious financial hardship thresholds: raising income and capital thresholds to reflect living costs and update them over time

  • Settlement decision-makers: allowing more flexibility in who makes settlement decisions in some cases

  • Cryptoasset market abuse regime: consequential amendments: extending the penalty framework to cover cryptoasset market abuse and reflecting new powers under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026

Feedback on the consultation is welcomed until 10 August 2026.

Tags: consultation | Decision Procedure and Penalties Manual | DEPP | FCA

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International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.