Cracking Down on Crime and Compliance

Unknown Speaker

Hello everyone, and welcome back to the B-Compliant Podcast. I’m Vicky Pearce, and as always, I’m joined by the brilliant Rachel MacRae. Rach, how’s your week been?

Rachel MacRae

Oh, Vicky, it’s been a whirlwind! I’ve been knee-deep in policy documents, but I did manage to sneak in a bit of Jane Austen on the train. Keeps me sane, you know? But honestly, I’ve been itching to talk about this week’s big FCA case. It’s a bit of a thriller, isn’t it?

Unknown Speaker

Absolutely! The FCA’s conviction of Redinel and Oerta Korfuzi is one for the books. I mean, it’s not every day you see a case with over a million quid in illicit gains, is it! Redinel was a research analyst, so he had access to all sorts of confidential, price-sensitive info. And then he and his sister, Oerta, used that to trade ahead of market announcements—at least 13 companies, if I remember right.

Rachel MacRae

Yeah, and they weren’t exactly subtle about it, were they? They used Contracts for Difference (CFDs) and tried to hide Redinel’s involvement by trading through accounts held by associates. It’s like something out of a dodgy crime novel, but with spreadsheets instead of car chases.

Unknown Speaker

But what really got me was the money laundering bit. Nearly £200,000 in cash, laundered through more than 170 bank deposits. That’s a lot of trips to the bank, isn’t it? And all this was going on between December 2019 and March 2021. The FCA’s surveillance tools picked up on the irregular trading patterns, which is a testament to how sophisticated their monitoring has become.

Rachel MacRae

Exactly. And it’s not just about catching the bad apples, is it? It’s about sending a message to the whole industry. The FCA’s making it clear—if you think you can get away with this sort of thing, think again. And the sentencing’s not even happened yet, that’s set for July. Plus, they’re going after confiscation orders to claw back the proceeds.

Unknown Speaker

Yeah, and I think it’s a good reminder for trading firms—don’t just tick the box on your insider information policies. You need proper systems, real training, and a culture where people know what to do if they spot something dodgy.

Rachel MacRae

And, you know, sometimes people think, “Oh, that’ll never happen in my firm.” But these cases show it can happen anywhere. The FCA’s tools are only getting sharper, so it’s not worth the risk. And, honestly, it’s just the right thing to do—protecting clients, protecting the market.

Unknown Speaker

Speaking of protecting the market, let’s talk about the Bank of England’s latest move. The MPC decided to keep interest rates steady at 4.25% in June. Not exactly a shock, but there was a bit of a split—six wanted to hold, three wanted a cut. What do you make of that, Rach?

Rachel MacRae

Well, I think it shows just how tricky things are at the moment. Inflation’s been sticky—May’s CPI was 3.4%, same as April, so not much movement there. The Bank’s saying there’s been a lot of disinflation over the last couple of years, but they’re still worried about those lingering pressures. It’s a bit of a balancing act, isn’t it?

Unknown Speaker

Definitely. And it’s interesting to see how the FCA and the Bank of England sort of work in tandem. The FCA’s out there making sure the markets are clean and fair, while the Bank’s trying to keep the economy on an even keel. It’s like two sides of the same coin—one’s about integrity, the other’s about stability.

Rachel MacRae

Yeah, and when you think about it, all these decisions ripple out to advisers, compliance managers, everyone in the sector. If rates stay high, it affects borrowing, investment, even how firms manage their own finances. And with the FCA cracking down on financial crime, it’s all about keeping the system robust from every angle.

Unknown Speaker

And I suppose, as we’ve seen in previous episodes, especially when we talked about the FCA’s data-led supervision and the push for smarter regulation, it’s all about making sure the rules actually work in practice. Not just on paper.

Rachel MacRae

That brings us nicely to the FCA’s latest speech on their five-year plan. I have to say, I loved the food metaphors—made it a bit more digestible, if you’ll pardon the pun. But seriously, they’re doubling down on fighting financial crime, being a smarter regulator, supporting growth, and helping consumers. It’s a big agenda.

Unknown Speaker

It is, and I think what stood out for me was the focus on being proportionate and predictable. They’re not just throwing rules at everyone—they’re trying to tailor things to firm size and complexity. That’s something we see a lot in our work, isn’t it?

Rachel MacRae

Oh, absolutely. I was working with a smaller advice firm recently, and they were worried about being buried under the same requirements as the big players. But the FCA’s principles based approach now is more about right-sizing regulation, your systems and controls need to support the size and scope of your business. It's not a one size fits all approach from the regulator.

Unknown Speaker

And then there’s the new Supercharged Sandbox which has been specifically created to support firms who are looking to implement AI within the regulatory framework . That’s a bold move—embracing innovation, but also being clear about supporting firms to develop whilst maintaining compliance and preventing consumer harm. I think it shows the FCA’s willing to support growth, as long as it’s done responsibly. And the Consumer Duty is still front and centre—making sure people get the right support, especially with so many struggling financially these days.

Rachel MacRae

Yeah, and I think for advisers and compliance managers, the message is: don’t just wait for the next rule change. Get ahead by focusing on your systems, your training, and your culture. The FCA’s being clearer about what they expect, but it’s up to firms to actually deliver. And, you know, these initiatives—if they work—should help support economic growth by making the market safer and more efficient. But it’s a long game, isn’t it?

Unknown Speaker

It is. And as we’ve said before, it’s about building trust—between firms, clients, and the wider public. That’s what keeps the whole system ticking. Well, I think that’s a good place to wrap up for today. Rachel, always a pleasure chatting with you.

Rachel MacRae

Likewise, Vicky. And thanks to everyone for listening. We’ll be back soon with more updates—so keep your questions coming, and B-Compliant!

Unknown Speaker

Take care, everyone. Bye for now!

Rachel MacRae

Bye!