Speech by Emily Shepperd, chief operating officer, at the 10th Annual Culture and Conduct in Financial Services Summit.

The FCA has secured a confiscation order of £586,711.01 against Mohammed Zina, a convicted insider dealer. The order must be paid within 3 months, or Mr Zina will face a further 5 years in prison. The confiscation order amounts to all of Mr Zina’s available assets.Therese Chambers, the FCA’s joint executive director of enforcement and market oversight said: 'Insider dealing harms the integrity of our markets. As well as prosecuting insider dealers, we will not allow them to keep any part of their illicit profits. We have confiscated the entirety of Mr Zina’s assets, demonstrating that crime does not pay.’Between 2014 and December 2017, Mohammed Zina worked as an analyst at Goldman Sachs International (Goldman Sachs), joining its Conflicts Resolutions Group in 2016. In that role he came into possession of inside information relating to potential mergers and acquisitions his employer was advising on.Between 15 July 2016 and 4 December 2017, Mr Zina dealt in 6 shareholdings using this inside information. The total returns from trading in these stocks was approximately £140,486.The trading was partly funded by 3 loans, fraudulently obtained from Tesco Bank, totalling £95,000.In February 2023, Mr Zina was convicted of all 9 offences and sentenced to 22 months' imprisonment. Notes to editorsThe confiscation order was made on 29 January 2025.We previously published details of the defendant’s conviction and sentenceMr Zina has 3 months to pay the amount in full. Should he not do so he is liable to be sentenced to a further 5 years in prison and once released will still be liable to pay it in full, with interest. We will seek to enforce this against any available assets. The Proceeds of Crime Act 2002 allows ‘benefit’ of crime to be calculated as all property obtained in the course of the criminal conduct. The calculation of Mr Zina’s benefit from insider dealing represents the total gross value of the shares when sold rather than merely the profits achieved.The court found Mr Zina’s benefit across all his offences, including fraud, to be £1,091,424.72, when adjusted for inflation. The proceeds are adjusted for inflation to reflect the value as at the time of the order, i.e. in 2025, and therefore the sums involved include an uplift.The 6 shareholdings Mr Zina dealt in using inside information were: Arm Holdings plc, Alternative Networks plc, Punch Taverns plc, Shawbrook plc, HSN Inc, and Snyder’s Lance Inc.

The FCA has secured a confiscation order of £5,963,376.15, against convicted fraudster Guy Flintham. Mr Flintham is serving a 6-year prison sentence having pleaded guilty to fraud by false representation. The fraudulent investment scheme operated by Mr Flintham took £19m from over 240 investors.He made several fraudulent claims to investors, including about how the scheme was operated and the profits they were making. He falsified documents to support his claims.The court determined that Mr Flintham’s criminal benefit was £23,932,204.84, with the confiscation order amount being owed a £5,963,376.15, based on the court’s findings as to his available assets. The confiscated funds will be distributed to the victims of his crimes.The court has imposed a default prison sentence of 2 years on Mr Flintham, meaning that if he does not satisfy the terms of the confiscation order within 3 months, he will serve this further term of imprisonment in addition to the 6 years he is already serving.Steve Smart, joint executive director of enforcement and market oversight at the FCA, said: 'Mr Flintham deliberately lied and misled people, causing them serious harm. This order sends a signal to anyone who engages in fraud – your ill-gotten gains are not safe even when you’re behind bars.’The FCA will now contact the identified victims of Mr Flintham’s fraud to provide further information.Notes to editorsGuy Flintham’s date of birth is 7 July 1977.Guy Flintham pleaded guilty to fraud by false representation contrary to section 1 of the Fraud Act 2006.The court further ordered that the sums confiscated from Guy Flintham are used to compensate the identified victims.Find out more information about the FCA.

The FCA has set out proposals to make it easier for listed companies to issue corporate bonds that wealth managers and retail investors can buy. The FCA is consulting on a single standard for corporate bond prospectuses, covering both large and small (less than £100,000) bond sizes. This would reduce costs and barriers for companies raising capital and give investors the information they need to make an informed decision.The aim is to encourage companies listed on stock exchanges to offer bonds in smaller sizes, improving investment opportunities for wealth managers and retail investors. More flexible and cheaper capital raising should help UK listed companies to grow.The FCA is also proposing to simplify the requirements that apply to listed companies when they issue further securities. Among other changes, the FCA is proposing to streamline the process by cutting red tape.The new public offer platforms will offer an alternative route for companies to raise capital, including from retail investors, and promote scale-up capital raising for smaller companies.It will enable companies to make larger offers of shares or bonds to a broad investor base outside of public markets via an authorised firm, similar to crowdfunding platforms. Having clear and consistent requirements for firms, and setting out what firms need to become authorised, will build confidence in the new platforms and enable firms to access a wider pool of investors.Simon Walls, interim executive director of markets at the FCA, said:'We’re opening the door for corporates to issue bonds in small sizes so that a wider range of investors can invest in them. That’s more funding for companies, more easily, and more choice for investors too.'We want to make sure investors have the information they need to make informed decisions about risk while removing unnecessary costs and widening access.'The FCA recently set out proposals for a new private stock market, PISCES, on which shares in private companies will be bought and sold. This follows the FCA’s wide-ranging reforms to the UK’s world-leading markets to boost competitiveness, including:helping a wider range of companies to list on a UK exchangemaking it cheaper and easier for companies to raise money in the UKgiving asset managers greater freedom in how they pay for investment researchopening the Digital Securities Sandbox so firms can test innovative new technologiesdelivering a plan for regulating cryptoassetsNotes to editorsCP25/2: Consultation on further changes to the public offers and admissions to trading regime and the UK Listing Rules.CP25/3: Consultation on further proposals for firms operating public offer platforms.These consultations follow the more comprehensive proposals set out in July 2024. In CP24/12 and CP24/13 we consulted on the main proposals for a new prospectus regime, to follow our listing rules reform, to be in place by summer 2025. In those consultations we indicated we would set out further proposals on disclosure requirements for low denomination bonds and the application process for further issuance, with a view to finalising rules around the same time.FCA rules, in conjunction with the Public Offers and Admissions to Trading Regulations 2024, will replace the UK Prospectus Regulation in due course.Comments on the proposals for the POATRs and the public offer platforms should be sent to the FCA by 14 March 2025. We expect to make final rules in this area by summer 2025 subject to approval by the FCA Board and for rules to take effect by early 2026.

On 30 January 2025, CFSL (also known as Solaris EMI) entered special administration. Joshua James Dwyer and Robert Spence of Interpath Limited have been appointed as Joint Special Administrators. The Court decided to place CFSL into special administration on application by its directors. Joshua James Dwyer and Robert Spence of Interpath Limited were appointed as special administrators of CFSL.CFSL is authorised by the FCA to issue e-money and provide payment services. E-money firms like CFSL appoint distributors to distribute and redeem e-money. CFSL remains responsible for the activities of its distributors. The customers of the following distributor programmes are impacted by CFSL entering special administration:TrilogyFfreesNaga PayCFSL transferred the distributor programme Engage to Suits Me Limited before it entered special administration. Customers of Engage that were transferred to Suits Me Limited are not impacted by the special administration.The special administrators are responsible for managing customer claims against the firm and returning funds back to customers where possible. The special administrators will provide a report to creditors within 8 weeks of their appointment.For updates, customers should visit the special administrators’ dedicated portal.Please beware of scams. The special administrators will not call customers directly by phone.Customers can also contact our Consumer Helpline: 0800 111 6768.

The FCA and Practitioner Panel survey is being sent to all regulated firms so they can share their feedback on how the FCA regulates the industry. The survey is carried out on our behalf by Verian (formerly known as Kantar Public), an independent social research organisation.For the first time, the survey will be sent out to all regulated firms allowing us to capture an even wider range of feedback.We use the survey results to better understand issues affecting firms and to assess any changes we should consider making so we can operate more efficiently and effectively. The survey is one of several sources of feedback used to evaluate our performance against key areas of our 3-year Strategy.The results are presented to the Practitioner Panel and our Board and will be published in summer 2025.Responding to feedback from last year’s surveyWe have listened to the feedback from last year’s survey and are taking actions including:Delivering new measures to support growth, including the overhaul of UK listing rules, the reform of UK retail disclosure rules, changes to the remuneration regime with the PRA, proposals to provide better value for money for workplace pension savers, and the launch of our AI Lab to support innovators.Looking at how we can streamline our rulebook following our call for input asking for views on where we can simplify our retail conduct rules and guidance.Continuing to make it easier for firms to supply data to us, including creating a new firm portal, My FCA, due to launch in Spring 2025 and reviewing our regular data returns to ensure we still require the data we are asking for.In line with the Market Research Society Code of Conduct, Verian treats all survey responses in the strictest confidence. Personal information will not be published or shared with the FCA or the Panels.If you receive a request to participate in the survey and have any questions, contact Verian on 0800 015 0302 or at fcappsurvey@veriangroup.com.Alternatively, you can contact the FCA Supervision Hub on 0300 500 0597.

We welcome a positive outcome for investors, following our High Court proceedings over collective investment schemes. We brought a High Court claim against Lupton Fawcett LLP in respect of work undertaken for the Qualia Group of companies by a former member of the firm in and around 2016. In our claim, we alleged that Lupton Fawcett LLP had been knowingly concerned with the promotion of collective investment schemes operated by Qualia.The FCA and Lupton Fawcett LLP have now settled that claim on confidential terms.As part of that settlement process, and without any admission of liability, Lupton Fawcett has said: ‘Lupton Fawcett LLP wishes to express its profound regret that it ever became involved with the Qualia group of companies, and Lupton Fawcett LLP further supports the FCA in its message to professional advisers, namely that particular caution should be exercised in the context of providing advice in connection with collective investment schemes.’We welcome the constructive approach that Lupton Fawcett has taken since we brought proceedings and are satisfied that the settlement is the best outcome for investors. Professional firms that go beyond their remit by promoting unlawful investment schemes risk causing significant harm.Qualia investorsWe will contact affected UK-based Qualia investors in due course to arrange distribution of funds.Any UK investor in the Qualia scheme who has not received an email from us by 31 January 2025 should contact us to make sure the contact details we hold are up to date.Email: QualiaInvestors@fca.org.uk

Next steps for open banking will include a new independent company to drive forward variable recurring payments. Open banking is a UK success story with over 11.7 million active users and over 22.1 million open banking payments made monthly.There was significant progress in developing open banking in 2024, thanks to voluntary funding from 20 leading firms. This included:fraud analysis capabilitiesconsumer protectionsnew open banking services such as variable recurring payments (which will give consumers greater sight and control over their regular payments)It is clear from the National Payments Vision, and the government’s growth agenda, that continued success in this area is critical for the UK. The FCA and the Payment Systems Regulator (PSR) are fully supportive and are ready to meet this challenge – as set out in Nikhil Rathi’s letter to the Prime Minister and the PSR’s recent strategy update.Benefits of variable recurring paymentsAn important initiative underpinning growth is the development of new services that will give consumers and businesses more choice in how they make and receive payments safely, securely and efficiently.As a step towards using open banking payments for e-commerce, variable recurring payments will help consumers to take greater control of their regular payments. It will do this by allowing customers to control how much can be paid at one time or over the course of a month, reducing the risk of unexpected expenditure.For businesses, variable recurring payments offer greater competition to current payment methods and could help reduce processing fees. They could also increase the proportion of customers who complete a payment, through better user experiences.New independent operator for variable recurring paymentsOpen Banking Limited has been central to delivering progress.As part of the next steps to deliver variable recurring payments, Open Banking Limited will play a key role in establishing an independent central operator to coordinate how variable recurring payments are made.We support it in doing that, working with industry and trade associations, and look forward to significant progress being made in 2025. This will see live services available for consumers to make recurring payments to:utility companiesgovernmentfinancial services firmsIn addition, we are working with industry and trade associations to progress development of the commercial arrangements underpinning both variable recurring payments and use of open banking for e-commerce.Next stepsIt is critical that the collaboration seen in 2024 across the industry continues this year.We thank industry for their continued support and engagement in the success of open banking so far and we will continue to work together constructively as we implement the next steps.The FCA and PSR will continue to work closely together, overseen by a joint steering committee.

On 22 January 2025, London Community Credit Union (LCCU) was placed into administration and has now stopped trading. James Sleight and Stratford Hamilton of PKF Littlejohn Advisory Limited have been appointed as joint administrators. LCCU is a financial co-operative owned by its members. It is regulated by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) under Firm Reference Number (FRN) 213743 as a deposit-taker.The Financial Services Compensation Scheme (FSCS) is stepping in to protect members and will return members’ money within 7 working days from when the Credit Union was declared in default (22 January 2025).Members with a valid email address registered to their LCCU account, can request their payment from FSCS either by cheque or direct bank transfer via the online FSCS Payments Portal. Members will receive an email from FSCS inviting them to use the portal if they are eligible. The email will be sent from the following email address no-reply@payments.fscs.org.uk.Members who don’t receive an email from FSCS or are unable to use the FSCS Payments Portal before it closes, don’t need to do anything. FSCS will automatically send a cheque for their payment in the post within 7 working days. There is no need to contact FSCS.Members can get more information about receiving their money by: emailing - enquiries@fscs.org.ukcalling FSCS - 0800 678 1100 or 020 7741 4100, lines are open Monday to Friday from 9.00am to 5.00pmviewing the FAQs on the FSCS websiteviewing information on the Payments PortalMembers who make or receive regular payments from their account (eg, salary, rent or benefits) or want to discuss their accounts can: visit the LCCU websiteemail the administrator on lccu@pkf-l.com call the administrator on 020 7729 9218, 020 7189 1379, or 0113 541 7890Guidance is available on both the LCCU website and administrator website.Being alert to scamsAll customers should remain alert to the possibility of fraud. If you are cold called by someone claiming to be from the credit union, PKF or the FCA, please end the call and contact them directly using the contact details provided by us. See more on how to protect yourself from the most common types of scams.

The FCA has taken action to protect consumers by stopping Arthur Temlett, trading as Abacus Insurance Consultants, from carrying out any regulated activities, including acting as an insurance broker. The FCA is concerned that Abacus Insurance, which was based in Dumfries and Galloway, may have been selling home/motor insurance and not passing premium payments on to the insurance provider. Having a valid insurance policy is essential, and customers affected may be concerned about whether cover they have paid for is in place.Advice for ConsumersThe FCA is working with the relevant authorities to assess the situation.Customers who purchased car and home insurance from Arthur Temlett should contact their insurance providers directly to check that it is valid and in place. If they are uninsured, they should arrange alternative cover immediately.Alternative insurance can be bought directly from an insurance firm or arranged via an insurance broker. The British Insurance Brokers’ Association offers a service for customers who need help finding an authorised broker.Anyone who believes they have paid for a policy that does not exist should report this to Police Scotland in the first instance by dialling 101 and using the crime reference number: CR/0470100/24 before making a report to the FCA.We are in the early stages of assessing the number of customers who took out investments with Abacus Insurance, so we do not have further information at this stage. We would encourage customers to make a report to Police Scotland in the first instance using the crime reference number: CR/0470100/24 before making a report to the FCA.We will update this page with further details once we know more.Next StepsAt this stage, consumers do not need to submit complaints to the Financial Ombudsman Service. The FCA is continuing its enquiries and will provide updates on this page, including whether consumers should contact the Financial Services Compensation Scheme.Notes to editorsArthur Temlett trading as Abacus Insurance Consultants Firm Ref: 118204.Abacus Insurance is an insurance broker that sold motor and house insurance products from a range of insurers. Further information on the restrictions can be found on the Financial Services Register. Consumers can check the FCA consumer pages which contains a guide for using the Financial Services Register.Customers can use the askMID website for free to check if a specific vehicle is insured. However, this should not be relied on as evidence of cover as it is not able to confirm details of the insurer, the named policyholder, or the level of cover.Consumers should contact Police Scotland on telephone number 101 quoting crime reference CR/0470100/24 and must be prepared to provide personal details and information about any investments they undertook with Abacus.Customers can also make a report to the FCA using the contact details on the website.Find out more information about the FCA.