• The SEC and the FCA each publish annual reports, which can offer a useful insight into their enforcement actions.
• The data in the reports only represents a snapshot of the regulators’ activities, but is nevertheless helpful for identifying trends, themes and priorities in the regulators’ approach to enforcement.
• The FCA opened more cases this year compared to the previous year, whilst the SEC opened fewer cases this year than it opened last year. The SEC imposed a much larger quantum of penalties compared to the FCA. Investigations continue to take a very long time to be resolved.
• Both regulators continue to open investigations in a wide variety of areas, although misconduct remains focused in the same core categories as previous years. This includes matters involving unauthorised business, insider dealing, the retail sector, crypto assets and investment advisors.
• The data shows that both regulators are increasingly active in terms of dealing with ‘referrals’ and monitoring the market. The SEC in particular is focusing on its whistleblower program to boost its efficiency in this area, which has led to record whistleblower payouts for consecutive years. The FCA does not appear to place the same strategic importance on its own whistleblower program, instead seemingly to prefer to concentrate on its market monitoring and surveillance.

Introduction

As competent authorities of financial markets in their respective jurisdictions, the U.S. Securities and Exchange Commission...

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