15 January 2025, London/New York: The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) reported record-breaking enforcement actions in 2024, while the value of fines issued by the Financial Conduct Authority (FCA) more than tripled year-on-year, according to SteelEye’s annual fine tracker.
To create its annual snapshot of financial services penalties for compliance failures, SteelEye analyzed enforcement actions published by the US’ SEC and CFTC; the UK’s FCA; France’s Autorité des Marchés Financiers (AMF); the Netherlands’ Authority for the Financial Markets (AFM); Germany’s Federal Financial Supervisory Authority (BaFin) and Federal Office of Justice (FOJ); Singapore’s Monetary Authority of Singapore (MAS); and the Australian Securities and Investments Commission (ASIC).
- The SEC and CFTC reported a record $25.3bn in combined enforcement actions in 2024, including both fines and monetary relief.
- The FCA imposed £176m worth of fines in 2024, up 230% year-on-year from the £53.4m issued in 2023.
- Germany’s regulators, BaFin and FOJ, doled out €24.6m worth of fines in 2024, up dramatically from €8.1m the previous year. This is despite the number of penalties issued falling over 12% to 35.
- France’s AMF issued just €13.9m worth of financial penalties in 2024, down 89% from €127.9m in the previous year.
- The value of fines issued by the Netherlands also fell dramatically in 2024, dropping to €3.3m from €17.4m in 2023.
- Singapore’s MAS issued five fines worth a total S$7.7m in 2024, equal to the value doled out in 2023.
- Australia’s ASIC issued 20 financial penalties in the first half of 2024, worth a total A$32.2m, with H2 statistics yet to be released.
US regulators continue off-channel comms crackdown in record-breaking year
The SEC and CFTC reported a combined total of $25.3bn worth of enforcement actions in 2024 – the highest to date. The SEC filed 583 penalties worth a total $2.1bn, the second-highest amount on record, while the CFTC imposed $2.6bn. The remaining sum relates to monetary relief obtained via disgorgement and restitution, with settlements for landmark cases such as the FTX scandal finalized last year.
The SEC remained steadfast in its mission to crackdown on off-channel communications in 2024. The watchdog brought more than $600m in civil penalties against more than 70 firms, with 26 firms fined a total $390m in August alone for widespread record-keeping failures. The initiative has seen the regulator fine 100 firms a combined total of more than $2bn since December 2021.
FCA enforcements back with a bang
After the number of fines imposed by the FCA fell for the first time in seven years in 2023, last year saw the regulator pursue its crackdown on financial misconduct with renewed fervor. The watchdog issued a total 27 enforcement actions worth a combined £176m – up a considerable 230% from just £53.4m in 2023.
The lion’s share of the penalties related to breaches of Principles for Businesses (PRIN) three, with eight enforcements worth more than £100m in total citing this regulation. ‘PRIN 3’ relates to management and control, stating a firm must take reasonable care to organize and control its affairs responsibly and effectively, with adequate risk management systems.
While there was significant media coverage around the FCA investigating off-channel communications in 2024, the watchdog has yet to issue any fines related to the topic.
European regulators scale back fine issuance
Three of the most prominent European regulators scaled back fine issuance in 2024.
Germany’s markets authorities, BaFin and FOJ, imposed 35 penalties worth a combined €24.6m. While this figure represents a considerable uptick from the prior year’s total of €8.1m, the regulators actually issued over 12% fewer fines. The most notable was BaFin’s nearly €13m fine for Citigroup over control failures in its algorithmic-trading business, which triggered a flash crash in European equities in 2022.
In France, the AMF issued just 10 penalties worth a total €13.9m – an 89% decline from the previous year’s combined value of €127.9m. Despite the drop off, half of the fines related to either market manipulation or insider trading, with three citing the former and two the latter.
The value of fines issued by the Netherlands’ AFM also fell considerably in 2024, dropping to €3.3m from €17.4m in 2023. The regulator issued just four fines in 2024, down from six the year prior.
APAC combats money laundering, insider trading and market manipulation
Singapore’s MAS remained focused on identifying and curbing financial crime in 2024, with the regulator issuing five penalties worth a combined S$7.7m in 2024. The most significant fine was imposed on JPMorgan over misconduct by its relationship managers, while the other four fines related to anti-money laundering breaches and insider trading.
Meanwhile, Australia’s ASIC had a busy start to 2024, issuing 20 financial penalties worth a total A$32.2m in the first six months of the year. Five penalties related to market manipulation, while two cited insider trading.
Commenting on the findings, Matt Smith, CEO and co-founder of SteelEye, said: “In many ways, 2024 was quite exceptional from a regulatory standpoint. Not only did US watchdogs report record-breaking enforcement actions, but their British counterpart shifted up a gear with regards doling out penalties – perhaps a sign of what’s to come in 2025 if the FCA’s instant messaging investigation intensifies.
“There were also interesting surprises, with European regulators appearing to take their foot off the gas somewhat with regards fine issuance. But rather than suggest a change of regulatory focus, this may be evidence that European firms have implemented more sophisticated compliance systems over recent years.
“Looking ahead, the question many firms will be pondering – particularly those with global operations – is whether Trump’s election victory will see US regulators take a more relaxed approach to enforcing issues like off-channel communications. While the intensity of enforcement action may subside in the US in 2025, we don’t expect firms will reverse any of the initiatives already put in motion. In fact, we are more likely to see increased investment on a global basis in monitoring tools to address growing risks from overlooked platforms.”
