The Financial Conduct Authority has launched a consultation on targeted amendments to its Decision Procedure and Penalties Manual to update penalty guidance for individuals, reflect recent case law and existing practice, and accommodate its cryptoasset powers. The main proposals would raise the minimum initial disciplinary penalty for individuals in level 4 or 5 market abuse cases to GBP 150,000 from GBP 100,000, clarify that penalties may be increased where an individual’s income or net assets mean the sanction would otherwise lack deterrent effect, and revise how relevant income is calculated, particularly for deferred, unvested or uncertain remuneration. The package also updates serious financial hardship policy for individuals. The Financial Conduct Authority proposes increasing the starting thresholds to GBP 21,000 for net annual income and GBP 24,000 for capital, from GBP 14,000 and GBP 16,000 respectively, with both those thresholds and the GBP 150,000 market abuse minimum to be adjusted automatically every two years from May 1, 2028 using the Consumer Prices Index including owner occupiers' housing costs. The relevant income changes follow the approach taken in the 2025 Upper Tribunal decisions in Staley v FCA and Gonzalez v FCA, including that benefits earned during the misconduct period but received later would count, while benefits known not to be receivable would not. The Financial Conduct Authority also proposes clarifying that disgorgement would not be reduced for serious financial hardship, allowing wider representations about the effect of a property sale on other occupants, and changing settlement decision-making so a Market Oversight director or head of department may act as a settlement decision-maker when a case was referred from Market Oversight. For cryptoassets, the consultation would bring crypto market abuse within the existing market abuse penalty framework in DEPP, including treating prohibited use of inside information under the Cryptoasset Regulations as inside information for DEPP purposes. It would also assign executive decision-making procedures to three transitional powers under the Financial Services and Markets Act 2000 Cryptoassets Regulations 2026 relating to wind-down directions, exemption changes and public censure. Comments are requested by Aug. 10, 2026, after which the Financial Conduct Authority will consider feedback before deciding whether to make the changes.
Financial Conduct Authority2026-06-12
Financial Conduct Authority consults on DEPP changes including GBP 150000 minimum penalty for serious individual market abuse
The Financial Conduct Authority is consulting on targeted DEPP changes that would update individual penalty guidance, align it with recent tribunal decisions and extend the market abuse framework to cryptoassets. The proposals would raise the minimum initial disciplinary penalty for serious individual market abuse to GBP 150,000 and increase serious financial hardship thresholds to GBP 21,000 for income and GBP 24,000 for capital, with both adjusted every two years using CPIH. The package also clarifies deterrence adjustments based on income or net assets and changes settlement decision-making for Market Oversight referrals.