For many of us in the compliance community, the UK Financial Conduct Authority’s Market Watch (MW) newsletters have long been essential reading. A staple for professionals involved in financial markets regulation and compliance, the relevance of MW has never been limited to the UK. The issues it highlights, the behaviours it scrutinises and the guidance it provides frequently transcend borders — serving as indicators of regulatory best practice with global application.
Recognising the enduring popularity and influence of Market Watch, the FCA has now introduced a new publication: Enforcement Watch (EW). The first edition, EW1, draws directly on insights and themes emerging from the FCA’s enforcement activity, offering firms a clearer window into how the regulator interprets misconduct, assesses controls and determines enforcement priorities.
Jokes aside (and yes, this is another publication worth poring over — perhaps with a pour-over), Enforcement Watch has the potential to become just as influential as its stable-mate. Past editions of Market Watch are still cited years after publication, having become informal guideposts for compliance teams seeking defensible, well-reasoned approaches to regulatory obligations. There can be little doubt that Enforcement Watch will play a similar role, shedding light on how the FCA approaches enforcement in practice and, critically, what firms must do to achieve and demonstrate regulatory certainty.
EW1 highlights several enforcement priorities that should resonate well beyond the UK, including suspected systems and controls failings and the adequacy of firms’ financial crime frameworks. The broader message is unmistakable: regulators are increasingly focused not on reactive “firefighting,” but on whether firms have compliance systems and controls that are reasonably designed, effectively implemented and consistently tested to meet regulatory obligations. Assurance testing, in particular is a core component of a credible compliance framework and a key enabler of regulatory certainty.
Published on 28 January, EW1 is well worth your time — and firms would be wise to keep a close eye out for future editions. Together, Market Watch and Enforcement Watch provide invaluable insight into regulatory expectations today, and perhaps more importantly, where those expectations are heading tomorrow. Read Enforcement Watch Edition 1 to learn more.