Top FCA official joins Aston University and TheCityUK to tackle fraud risks and boost regional economic growth through collaborative enforcement.
The Financial Conduct Authority is deepening its commitment to tackle financial crime at a regional level, with Steve Smart, the FCA’s joint executive director of enforcement and market oversight, leading roundtable discussions in the West Midlands alongside Aston University and TheCityUK. The meetings focused on identifying local fraud risks, improving regulatory approaches, and exploring how closer partnership working can support sustainable regional economic growth.
Smart’s visit reflects a broader shift in how the FCA approaches financial crime regulation. Rather than operating exclusively from London, the regulator is increasingly embedding itself in regional business communities to understand localised threats and strengthen defences at the grassroots level. The West Midlands, as a significant financial and business hub, faces distinct vulnerabilities that require tailored responses from regulators, industry, and academic institutions working in concert.
The FCA’s Enforcement-Led Strategy
Smart represents a tougher, more proactive approach to financial crime within the FCA. A former director of intelligence at the National Crime Agency, he has championed the principle that the FCA functions as both a regulator and a law enforcement agency when it comes to financial crime prevention and prosecution. This dual role gives the FCA greater reach and enforcement powers than traditional regulators alone.
The results of this approach are measurable. In the last financial year, the FCA issued 37 Final Notices against firms, secured five convictions, imposed fines exceeding £186 million, and brought charges against 19 defendants. Over a six-month period more recently, the regulator secured convictions against six individuals for fraud and insider dealing whilst also issuing substantial penalties to firms whose anti-money laundering systems proved inadequate. These enforcement actions serve as clear signals to the financial services industry and to would-be criminals about the cost of non-compliance.
The FCA has also significantly expanded its capacity to block fraud at source. During 2024 alone, the regulator took down more than 50 fraudulent apps, over 1,600 websites facilitating financial crime, and nearly 20,000 non-compliant financial promotions. This represents a shift from reactive prosecution to proactive disruption, preventing harm before it occurs rather than simply punishing wrongdoers after the fact.
Tackling the Scale of Fraud in Britain
Fraud remains one of the most pressing crimes affecting UK citizens. It accounts for 44 per cent of all recorded crime in England and Wales and costs the British economy billions of pounds annually. Authorised push payment scams—where criminals persuade customers to transfer money to accounts controlled by fraudsters—particularly highlight the vulnerability of individuals navigating financial services.
However, recent progress offers some encouragement. Under new compensation arrangements overseen by the FCA, 86 per cent of money lost to authorised push payment scams was returned to victims in the first three months of the scheme’s operation, compared to 68 per cent previously. This improvement has restored £27 million to affected consumers and is beginning to rebuild confidence in the financial system. Claims are now being resolved faster, with 84 per cent settled within five working days, demonstrating that better regulation and industry cooperation can deliver tangible benefits.
Building Collaborative Defences
The roundtables in the West Midlands underscore an important principle: financial crime requires coordinated responses across multiple sectors. Universities contribute research expertise and can train the next generation of compliance professionals. Industry bodies like TheCityUK represent financial services firms and help translate regulatory requirements into practical business solutions. And the FCA brings enforcement capability and strategic priority-setting.
At the national level, this collaboration has taken concrete form. The FCA participates in the Joint Fraud Taskforce and has helped establish the UK’s first “cross-system” economic crime priorities under the Economic Crime Plan 2. The regulator has also placed staff directly within the National Crime Agency to facilitate intelligence sharing and coordinated responses. Additionally, the FCA supports the Economic Crime and Corporate Transparency Act, which improves information sharing between firms on suspected economic crimes.
Emerging initiatives are also shaping how the industry detects threats. The National Economic Crime Centre’s Data Fusion Project, for instance, links bank transaction data with crime intelligence to identify and disrupt organised crime networks operating within the financial system. The FCA is additionally piloting a synthetic data project with industry partners—using realistic but privacy-safe data to help firms build and test more effective anti-money laundering systems. An AML Synthetic Data sprint is planned for later this year, further democratising access to the tools needed to combat financial crime.
Beyond Enforcement: Behaviour and Prevention
Smart has emphasised that effective financial crime prevention extends beyond enforcement to encompass broader conduct and behavioural standards. The FCA’s campaigns—InvestSmart, ScamSmart, and the Warning List—have made progress in raising public awareness. Partnerships with technology giants including Google, Bing and Meta have helped suppress illegal financial promotions and scam advertising at scale.
Source: @TheFCA
Key Takeaways
- The FCA is adopting a proactive, regionally embedded approach to financial crime prevention, with senior leadership engaging directly with universities and industry bodies to address localised fraud risks.
- Enforcement action is yielding results: the FCA secured five convictions and imposed £186m in fines last year, whilst taking down more than 50 fraudulent apps and 1,600 websites.
- Fraud remains the crime most likely to affect UK citizens, accounting for 44 per cent of recorded crime, though new compensation schemes are returning 86 per cent of authorised push payment scam losses to victims.
- Collaboration between regulators, financial services firms, technology companies and academic institutions is essential to staying ahead of organised crime groups.
What This Means for Kent Residents
For Kent residents and businesses, the FCA’s strengthened regional engagement has direct implications. Kent’s significant banking presence, cross-Channel trade infrastructure centred on Dover and Folkestone, and growing fintech sector make the county both vulnerable to and valuable in combating financial crime. The improved return rates on authorised push payment scams mean Kent consumers have better protection if defrauded. Small business owners should ensure their financial controls meet FCA expectations, as the regulator’s enforcement focus on adequate
