Enforcement and litigation update – new Enforcement Watch newsletter, Carillion and finfluencers in court
Insight
The FCA’s enforcement agenda remains active across a wide range of issues, from misleading statements and unauthorised promotions to payment controls, insider dealing and pension transfer advice. In this March 2026 update, we look at the regulator’s new Enforcement Watch newsletter and a series of recent cases and penalties involving Carillion, finfluencers, HTX, confirmation of payee failings and pension transfer misconduct.
Read other sections from our financial institutions newsletter:
FCA Enforcement Watch
The FCA is now sending out an 'Enforcement Watch' newsletter, which is part of its wider transparency drive. It provided updates on their publicity policy (including the failed judicial review of their decision to publicise their investigation into the Claims Protection Agency), international partnerships, and their enforcement priorities.
The FCA reports that is currently investigating issues including:
- Individuals' responsibility for regulatory failings.
- Six potential Consumer Duty breaches by firms, particularly in relation to fair value.
- The adequacy of firms' financial crime controls.
- In the consumer investment and asset management sectors, potentially misleading statements to consumers, and failures to recognise conflicts of interest.
Fine to Bank of Ireland for failure to implement Confirmation of Payee
On 19 February 2026 the PSR issued a Decision Notice against Bank of Ireland (UK) plc, fining them £3.8m for a failure to implement the 'send' portion of the confirmation of payee requirements in Specific Direction 17. The Bank of Ireland ended up implementing the required changes 14 months late.
Carillion decisions
On 16 February the FCA published its final notice to Richard Howson, former group chief executive of Carillion plc (in liquidation), for breaches of MAR and the Listing Rules in relation to misleading statements issued by Carillion in relation to its financial position. He was fined £237,700.
The FCA also fined the two former Carillion finance directors in January for breaches of the same rules.
All three were fined after they withdrew their challenges to the FCA decisions.
Carillion itself was censured by the FCA in 2022 for the misleading statements, and had it not been in liquidation, it would have been fined £38m. It had gone into liquidation in January 2018, with total liabilities estimated at nearly £7bn.
Upper Tribunal decision relating to British Steel Pension transfer
On 19 January the Upper Tribunal published a decision in which it upheld a ban and fine of over £2m to Darren Reynolds, a former financial adviser. The FCA had found Mr Reynolds to have given dishonest transfer advice and investment recommendations to BSPS members, regarding transferring out of their defined benefit pension schemes. The judge referred to him as a 'corrupt and dishonest man'.
This is another chapter in the BSPS pension fund mis-selling scandal, and is one of the largest individual fines ever levied by the FCA.
Upper Tribunal decision relating to pension transfers / investments.
On 12 February 2026 the Upper Tribunal handed down its decision relating to two decision notices issued by the FCA in 2022 to two men, Stephen Burdett and James Goodchild. The Upper Tribunal upheld the financial penalties imposed by the FCA (amending the amounts slightly), and also upheld the FCA's prohibition of both men working in financial services.
The Upper Tribunal found that both men lacked integrity. Mr Burdett had been acting as a CF1 without FCA approval, and both were found to have arranged to funnel a large proportion of the pension funds of retail clients, who were told they were investing in low/medium risk portfolios, into high risk investments (including a tourist resort in Cape Verde). The investments subsequently failed and clients lost their money. The FSCS has had to pay out £1.4m to victims of the two men.
Court case against HTX
On 10 February the FCA published the court documents in its claim for injunctive relief against HTX (formerly Huobi), a cryptoasset exchange based in Panama, which it had issued in October 2025.
It is alleging that HTX was promoting cryptoasset services to UK customers in breach of s.21 FSMA.
Finfluencers in Court
On 20 February, the FCA announced that seven social media influencers were sentenced at Southwark Crown Court and were variously fined for issuing unauthorised financial promotions. The FCA has been conducting a well-publicised crackdown on 'finfluencers', and is due to publish further guidance for them later this year.
Crypto advert banned
On 28 January the Advertising Standards Authority announced that had banned a video advert from Coinbase on the basis that they 'trivialised the risks associated with cryptocurrency investment'.
Fines for insider dealing
On 10 February the FCA published final notices to two individuals in which it fined them over £100K collectively for breaches of UK MAR.
Fine for the former Banque Havilland
On 3 February the Upper Tribunal upheld a warning notice and penalty (although reduced the quantum) that the FCA had imposed on Rangecourt SA (formerly Banque Havilland) and two of its officers, for failing to act with integrity in aiming to devalue the Qatari currency.
The judgment contains an interesting discussion relating to whether Principle 1 of the FCA's Principles for Businesses applies to actions carried out by staff of a firm only insofar as they are carrying on regulated or ancillary activities, or more widely. The court was further asked to consider whether the seniority of the person involved in the misconduct was relevant.
The court held, in this particular case, that it is only necessary to look at whether the relevant conduct amounts to the firm's business, and if so, then the firm should be held liable for that conduct. The court found that the obligation under Principle 1 was not just to conduct with integrity that part of the firm's business of which the directing mind had knowledge, but to conduct all the firm's business with integrity.
The court further held that in all cases it will be necessary to stand back and consider whether it is consistent with the purpose of Principle 1 for the conduct to be treated a part of the firm's business.
The Upper Tribunal reduced the FCA's fine on the bank from £10m to £4m. This was part of a wider recent pattern of the Upper Tribunal agreeing with the FCA on liability, but not on the size of the penalty.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, March 2026
