No Result
View All Result
SUBSCRIBE | NO FEES, NO PAYWALLS
MANAGE MY SUBSCRIPTION
NEWSLETTER
Corporate Compliance Insights
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe
Jump to a Section
  • At the Office
    • Ethics
    • HR Compliance
    • Leadership & Career
    • Well-Being at Work
  • Compliance & Risk
    • Compliance
    • FCPA
    • Fraud
    • Risk
  • Finserv & Audit
    • Financial Services
    • Internal Audit
  • Governance
    • ESG
    • Getting Governance Right
  • Infosec
    • Cybersecurity
    • Data Privacy
  • Opinion
    • Adam Balfour
    • Jim DeLoach
    • Mary Shirley
    • Yan Tougas
No Result
View All Result
Corporate Compliance Insights
Home GRC Vendor News

Total Financial Penalties Rise 5.3% on Average Across Global Financial Regulators

by Corporate Compliance Insights
September 20, 2016
in GRC Vendor News
Total Financial Penalties Rise 5.3% on Average Across Global Financial Regulators

U.S.-Specific Findings Include 28 Percent Decrease in FINRA Penalties

September 19, 2016 (New York) – Duff & Phelps, the premier global valuation, corporate finance and regulatory services advisor, today announced the release of the Global Enforcement Review 2016 report, which provides analysis and commentary on global enforcement trends in the financial services industry.  From a global perspective, total financial penalty amounts increased 5.3 percent on average in 2015 across five key global regulators: the U.K.’s Financial Conduct Authority (FCA), the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Commodity Futures and Trading Commission (CFTC) and Hong Kong’s Securities and Futures Commission (SFC).

Key findings from U.S.-based regulators include the following:

  • Total fines levied by FINRA decreased 28 percent to $95.1 million. This represents the second largest drop among the five regulators studied.
  • The SEC saw aggregate total financial penalties (inclusive of penalties and disgorgements) remain basically flat at $4.19 billion – representing a 1 percent increase, while the CFTC fines increased to $3.14 billion – an increase of 75 percent.  The considerable increase at the CFTC was in part due to the regulator enforcing new powers granted under the Dodd-Frank Act including anti-spoofing and anti-manipulation authorities and the prosecution of LIBOR and Forex exchange benchmark rate cases.
  • Among all U.S. regulators, the SEC led the way in using a data-driven approach in cases involving complex insider trading activity. This approach was used, for example, to identify an adviser who was disproportionately allocating profitable trades to favored accounts. It is also noteworthy that investments in big data and key IT infrastructure activities are included in the SEC’s request of over $1.7 billion for its 2017 budget.
  • With respect to whistleblower actions, disclosures to the SEC rose to 3,923 in 2015 – an 8.4 percent increase from the prior year. The SEC paid out $38 million in awards to eight whistleblowers over the course of 2015. As of August 30, 2016, the regulator has issued awards totaling more than $100 million over the past five years to whistleblowers.

Monique Melis, Managing Director within Duff & Phelps’ Compliance and Regulatory Consulting practice and global service line head of Regulatory Consulting, commented: “U.S. regulators continue to be keenly focused on individual wrongdoing and insider trading cases, an area in which they have earned considerable success. Data-driven approaches and new technologies are playing a meaningful role in this respect, as they provide new tools and tactics for regulators to detect and prosecute such cases. These kinds of enforcement actions advance two clear objectives for regulators, regardless of jurisdiction: they punish individual bad actors, and [they] send a powerful deterrent about the need for organizations to build and maintain a culture of compliance.”

Global Findings

Key findings across international jurisdictions include the following:

  • In the United Kingdom, the FCA posted £905.2 million in total fines for 2015 – a 38 percent decrease compared to the prior year as the body concluded investigations into LIBOR manipulation.
  • In Hong Kong, the SFC reported an 18 percent increase in aggregate penalties to HK$70.9 million, which was driven by several large single fines.
  • The increasing use of data in enforcement actions also has a global component, with a corresponding impact on the slowdown of expenditure and hiring by financial regulators. Across the FCA, CFTC, SEC, FINRA and SFC, expenditure rose by 9.7 percent on average over the last fiscal year, while staff numbers increased 5.5 percent. This contrasts with the double-digit growth at many of the regulators in previous years.

Figure A: Change in Total Financial Penalty Amount from 2014 to 2015[1]

 

dp-image-1Figure B: Annual expenditure and Staff Growth Rates by Regulator[2]

dp-image-2Methodology

In compiling the report, Duff & Phelps studied data released by the U.K. FCA, the U.S. SEC, the U.S. CFTC, the U.S. FINRA and the SFC of Hong Kong published in 2015 and recent years.

About Duff & Phelps

Duff & Phelps is the premier global valuation and corporate finance advisor with expertise in complex valuation, dispute and legal management consulting, M&A, restructuring and compliance and regulatory consulting. The firm’s more than 2,000 employees serve a diverse range of clients from offices around the world. For more information, visit www.duffandphelps.com.


Previous Post

Disparaging Company Tweets May Be Protected

Next Post

Research Finds 76% of Security Professionals Believe Sharing Threat Intelligence Is a Moral Responsibility

Corporate Compliance Insights

Corporate Compliance Insights

Corporate Compliance Insights

Related Posts

robot nurturing a good idea

Innovation vs. Compliance: In the Age of AI, Why Not Both?

by Asha Palmer
June 17, 2025

As governments scramble to regulate AI, forward-thinking companies are writing their own compliance playbooks

human robot working as team pie chart

Smart Machines, Smarter Humans: Why Compliance Still Needs a Human Touch

by Roman Eloshvili
June 17, 2025

From the 2008 financial crisis to everyday judgment calls, the case for keeping humans in the compliance loop

data privacy leader concept

Who’s Minding Your Data? The Case for Dedicated Privacy Leadership

by Daniel Barber
June 16, 2025

As state privacy laws multiply and AI introduces new vulnerabilities, the question isn't whether you need dedicated privacy expertise —...

abstract obscured data colorful

NIST’s Differential Privacy Guidelines: 6 Critical Areas for Secure Implementation

by Michelle Drolet
June 16, 2025

Standard de-identification methods remain vulnerable to sophisticated attacks, but differential privacy offers mathematical guarantees that scale with emerging threats

Next Post
Research Finds 76% of Security Professionals Believe Sharing Threat Intelligence Is a Moral Responsibility

Research Finds 76% of Security Professionals Believe Sharing Threat Intelligence Is a Moral Responsibility

No Result
View All Result

Privacy Policy | AI Policy

Founded in 2010, CCI is the web’s premier global independent news source for compliance, ethics, risk and information security. 

Got a news tip? Get in touch. Want a weekly round-up in your inbox? Sign up for free. No subscription fees, no paywalls. 

Follow Us

Browse Topics:

  • CCI Press
  • Compliance
  • Compliance Podcasts
  • Cybersecurity
  • Data Privacy
  • eBooks Published by CCI
  • Ethics
  • FCPA
  • Featured
  • Financial Services
  • Fraud
  • Governance
  • GRC Vendor News
  • HR Compliance
  • Internal Audit
  • Leadership and Career
  • On Demand Webinars
  • Opinion
  • Research
  • Resource Library
  • Risk
  • Uncategorized
  • Videos
  • Webinars
  • Well-Being
  • Whitepapers

© 2025 Corporate Compliance Insights

Welcome to CCI. This site uses cookies. Please click OK to accept. Privacy Policy
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
No Result
View All Result
  • Home
  • About
    • About CCI
    • CCI Magazine
    • Writing for CCI
    • Career Connection
    • NEW: CCI Press – Book Publishing
    • Advertise With Us
  • Explore Topics
    • See All Articles
    • Compliance
    • Ethics
    • Risk
    • FCPA
    • Governance
    • Fraud
    • Internal Audit
    • HR Compliance
    • Cybersecurity
    • Data Privacy
    • Financial Services
    • Well-Being at Work
    • Leadership and Career
    • Opinion
  • Vendor News
  • Library
    • Download Whitepapers & Reports
    • Download eBooks
    • New: Living Your Best Compliance Life by Mary Shirley
    • New: Ethics and Compliance for Humans by Adam Balfour
    • 2021: Raise Your Game, Not Your Voice by Lentini-Walker & Tschida
    • CCI Press & Compliance Bookshelf
  • Podcasts
    • Great Women in Compliance
    • Unless: The Podcast (Hemma Lomax)
  • Research
  • Webinars
  • Events
  • Subscribe

© 2025 Corporate Compliance Insights