On 17 September 2024, the Financial Conduct Authority (FCA) published a speech (dated 5 September 2024) given by Andrea Bowe (FCA Director of Specialist Directorate) entitled Frameworks for effective fraud prevention measures.

Highlights from the speech include:

  • Collaboration and a collective effort are key to tackling fraud. In particular, Ms Bowe notes that the relationship between regulated and regulator can be seen as adversarial. What the outside world sees are criticisms made, fines levied, formal action taken. What is often less obvious is that there is a mutual interest in tackling the scourge of financial crime, not least because it inhibits growth by diverting funds that could go to investment into criminal coffers instead.
  • Partnerships, where ideas are shared, lessons learnt, exchange data and intelligence are essential in reinforcing defences and staying ahead of evolving threats. Among other things, Ms Bowe gives the example that last year, the FCA and the National Crime Agency jointly hosted a 3-day investment fraud tech sprint. This saw regulatory, intelligence and law enforcement agencies get together to test tactical, cross-agency collaboration, and it led directly to the development of solutions that participants are continuing to explore.
  • Addressing mule activity is an area where collective efforts can have a substantial impact on disrupting and greatly reducing the flow of fraudulent funds. Firms must adopt a collaborative approach, prioritising not only the sharing of information on suspected mules, but also acting swiftly when such information is received, whether through internal or external channels.