The FCA has had a relatively quiet start to the year, but as the first quarter of 2026 progresses, the number of fines is mounting. We analyse the nature of the breaches behind the penalties dished out so far.
The FCA's most recent fine indicates that there are serious consequences to pay should companies or individuals breach the law. To date, the total amount issued by the FCA is £15 749 723 in the first quarter of the year.
With a pattern of individual misconduct emerging, it is more important than ever for staff, including senior management, to engage in FCA compliance training. The consequences of inadequate advice or misleading information in financial services can be detrimental, resulting in heavyweight penalties.
Top FCA fines in 2026
- John Wood Group PLC- £12.9m fine
- Darren Anthony Reynolds - £2m fine
- Richard John Howson - £237k fine
- Richard Adam - £232k fine
- Zafar Khan - £138k fine
- Bhavesh Hirani - £56k fine
- Dipesh Kerai - £52k fine
We continuously track the largest Financial Conduct Authority (FCA) fines and identify trends in breaching FCA rules year on year.
What are the biggest FCA fines 2026 in detail
Here is a breakdown of the most significant penalties of the year thus far and the reasons behind them.
1. John Wood Group PLC (£12.9m fine)
Breaches of the Listing Rules and Listing Principle 1
The FCA fined John Wood Group PLC £12.99 million for publishing misleading financial information in several financial statements. The company's reports for 2022, 2023, and the first half of 2024 contained inaccurate figures linked to accounting decisions that were influenced by pressure to maintain previously reported financial performance, despite some projects performing poorly.
The FCA found that the company had weak internal controls and oversight, which allowed misleading information to be included in its public financial announcements. These failures meant investors did not receive accurate information about the company’s financial position.
The issues became clear in late 2024 and contributed to a major fall in the company's share price. After investigating the matter, the FCA concluded that the company had breached its reporting obligations. Wood Group accepted the regulator's findings and received a reduced fine for cooperating during the investigation.
2. Darren Anthony Reynolds (fined £2m)
Breach of Statement of Principle 1
The UK’s financial regulator, the FCA, has had its decision upheld by the Upper Tribunal to permanently ban Darren Antony Reynolds from working in financial services and impose a £2,037,892 fine for serious misconduct.
The Tribunal found Reynolds to be dishonest and lacking integrity in advising clients. He gave unsuitable pension transfer and investment advice, including encouraging members of the British Steel Pension Scheme to leave valuable defined‑benefit pensions for higher-risk products, while hiding high exit charges and falsifying documents. Hundreds of clients suffered significant financial harm as a result.
Reynolds also allowed unqualified people to give regulated pension advice, lied to regulators, permitted important evidence to be destroyed, and tried to shield assets by moving his home into a trust to avoid paying debts. Over £17.6 million in compensation has already been paid to more than 470 affected customers.
The Tribunal described his conduct as corrupt and dishonest, and the FCA said it will pursue the fine fully, including bankruptcy proceedings if necessary, to ensure he does not retain any profits from his misconduct.
"Mr Reynolds’ misconduct was the worst we saw out of all the British Steel Pension Scheme cases, and he caused untold damage to his clients. He acted in a way that was corrupt and dishonest, putting his own profits before people’s pensions and acting without integrity as he tried to cover his tracks."
3. Richard John Howson (fined £237k)
Breaches of Article 15 of the Market Abuse Regulations, Listing Rule 1.3.3R, Listing Principle 1 and Premium Listing Principle 2
The FCA has fined Richard Howson, former CEO of Carillion, £237,700 for issuing misleading financial information before the company's collapse. Between July 2016 and July 2017, Howson was aware of serious financial problems in Carillion's UK construction division but failed to disclose them properly in company announcements or adequately inform the board and audit committee. This led to overly positive statements about the company's performance, breaching market rules.
The FCA described Howson's actions as reckless and in violation of the Market Abuse Regulation and Listing Rules, misleading investors about Carillion's financial health. Howson's fine was imposed after he withdrew his challenge to the FCA's decision. Two former finance directors, Richard Adam and Zafar Khan, had previously agreed to fines of £232,800 and £138,900 respectively for related breaches.
The collapse of Carillion had widespread consequences, including job losses, disruption to public sector contracts, and financial losses for investors who relied on the company's reporting.
4. Richard Adam (fined £232k)
Breaches of Article 15 of the Market Abuse Regulations, Listing Rule 1.3.3R, Listing Principle 1 and Premium Listing Principle 2
The FCA has fined Richard Adam, the former group finance director of Carillion plc, £232,800 for his involvement in issuing misleading financial information prior to the company’s collapse. Adam served as group finance director from April 2007 until the end of 2016. During this period, the FCA found that he was aware of serious financial problems in Carillion’s UK construction business but failed to ensure these issues were accurately reflected in public company announcements.
He also did not fully inform the board or audit committee of the company’s deteriorating financial position. The FCA concluded that under Adam’s oversight, Carillion’s financial reporting systems and internal controls were insufficient. Contract accounting judgments were not always properly made, recorded, or disclosed.
This contributed to the publication of misleading financial statements. The regulator judged that Adam acted recklessly and was knowingly involved in breaches of market abuse and listing rules by allowing inaccurate financial information to reach investors.
Adam ultimately withdrew his challenge to the FCA’s decision, confirming the £232,800 fine. This action comes in the wider context of Carillion’s dramatic collapse in January 2018, which left thousands of employees at risk and disrupted numerous public sector projects. The company’s liquidation marked one of the largest corporate failures in UK history, highlighting serious shortcomings in financial governance and executive accountability.
5. Zafar Khan (fined £138k fine)
Breaches of Article 15 of the Market Abuse Regulations, Listing Rule 1.3.3R, Listing Principle 1 and Premium Listing Principle 2
The FCA has fined Zafar Khan, a former finance director of Carillion Plc, for his role in issuing misleading financial statements prior to the company’s collapse in 2018. Khan served as finance director from January to September 2017, a period during which Carillion’s UK construction business was already experiencing severe financial difficulties.
The FCA found that he was aware of these problems but failed to ensure that the company’s financial reporting accurately reflected its true financial position.
The FCA determined that Khan acted recklessly and was knowingly concerned in breaches of market abuse rules and Listing Rules designed to ensure transparency for shareholders and investors. Alongside other executives, he signed off on financial statements that painted an overly optimistic picture of Carillion’s finances, despite being aware of serious issues within the business. His conduct contributed to a lack of accurate disclosure, which misled investors and the wider market.
After initially challenging the FCA’s findings, Khan eventually withdrew his appeal in late 2025. As a result, the FCA imposed a fine of £138,900, which included a reduction for his cooperation. This financial penalty complements previous sanctions against him, including an 11-year ban from serving as a company director, stemming from the same events leading up to Carillion’s collapse.
Khan’s case is part of a wider regulatory response to Carillion’s failure, highlighting the responsibilities of senior executives to maintain robust reporting systems and ensure accurate disclosure of financial performance. The FCA emphasised that directors cannot ignore warning signs or rely on optimism when public statements about a company’s finances are issued.
6. Bhavesh Hirani (fined £56k)
Breaches of Article 14(a) and Article 14(c) of UK MAR relating to insider dealing and the unlawful disclosure of inside information
The UK's FCA has fined Bhavesh Hirani £56,000 for insider dealing involving shares of Bidstack Group Plc, a video-game advertising company. At the time of the misconduct, in December 2021, Hirani was serving as interim Chief Financial Officer at Bidstack and had access to confidential, price-sensitive information about a significant commercial deal that the company was about to announce.
Before the deal was made public, Hirani disclosed this inside information to an associate, Dipesh Kerai, and subsequently opened a brokerage account in Kerai’s name. Using this account, they purchased approximately 1.3 million Bidstack shares while still in possession of the confidential information.
When the deal was announced publicly, the share price surged by more than 125%, generating significant profits from the trades. Kerai’s profits, totaling over £9,000, were ordered to be returned as part of the FCA’s enforcement action.
The FCA concluded that Hirani’s actions breached UK market abuse laws by unlawfully disclosing inside information and enabling insider trading. His penalty took into account a 30% settlement discount applied to the assessed fine.
7. Dipesh Kerai(fined £52k)
Breach of article 14(a) of UK MAR relating to insider dealing
The FCA has fined Dipesh Kerai £52,731 for insider dealing connected to shares of Bidstack Group Plc. The case arose from events in December 2021, when Bhavesh Hirani, the company’s interim CFO at the time, shared confidential information about a major commercial deal before it was publicly announced.
Hirani passed this non-public, price-sensitive information to Kerai and opened a trading account in Kerai’s name. Using this account, they purchased 1.3 million Bidstack shares ahead of the deal’s announcement. When the information became public, Bidstack’s share price rose by more than 125%, generating over £9,000 in profit for Kerai, which he has been required to return as part of the FCA’s penalty.
The FCA’s investigation was prompted by Suspicious Transaction and Order Reports submitted by a regulated firm, demonstrating how industry reporting can detect market abuse. Overall, the combined fines for Kerai and Hirani totaled approximately £108,731, with Kerai’s portion reflecting both the disgorged profits and the regulatory fine.
"Dipesh Kerai and Bhavesh Hirani exploited inside information for their own gain, trading on details other investors couldn’t have known. Big thanks to the firm that reported its suspicions, enabling us to identify the perpetrators and hold them to account. Working with industry we will continue to take action against anyone who misuses inside information and undermines trust in UK markets."
This enforcement highlights the FCA’s commitment to ensuring market integrity and holding individuals accountable for trading on confidential information. Kerai’s case serves as a clear example that trading based on insider knowledge carries serious legal and financial consequences.
FCA Fines FAQs
What is a Recognised Investment Exchange (RIE) and how is it regulated?
A Recognised Investment Exchange (RIE) is a UK exchange authorised by the FCA to trade securities or derivatives. RIEs must maintain orderly markets, monitor for abuse, and ensure member compliance, with the FCA supervising their operations and enforcing rules as needed
What steps can firms take to avoid FCA penalties?
Firms can mitigate the risk of FCA penalties by establishing comprehensive compliance frameworks. This includes implementing clear policies on market abuse, conducting regular staff training, maintaining accurate insider lists, and ensuring timely submission of Suspicious Transaction and Order Reports (STORs). Additionally, firms should regularly audit their surveillance systems to detect and address any potential issues promptly.
How does the FCA monitor and detect market abuse?
The FCA employs advanced surveillance tools to monitor trading activities, including the analysis of transaction reports and order books. Firms are required to submit STORs when they suspect market abuse, and issuers must maintain insider lists. The FCA also collaborates with other regulators and uses data analytics to identify and investigate potential instances of market abuse, ensuring the integrity of UK financial markets.
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Written by: Emmeline de Chazal
Emmeline is an experienced digital editor and content marketing executive. She has a demonstrated history of working in both the education management and software industries. Emmeline has a degree in business science and her skillset includes Search Engine Optimisation (SEO) and digital marketing analytics. She is passionate about education and utilising her skills to encourage greater access to e-learning.
