Three individuals have been arrested in connection with a large-scale investigation into suspected insider trading and money laundering, authorities confirmed. The operation, involving over 100 personnel from the Financial Conduct Authority (FCA) and the National Crime Agency (NCA), included coordinated raids on five residential properties located in London and Manchester. During the searches, investigators seized more than 30 electronic devices, including phones, computers, and tablets. The suspects remain unnamed and were taken for questioning at police stations.

The arrests coincide with remarks made by Nikhil Rathi, chief executive of the FCA, who told members of Parliament’s Treasury Select Committee that the regulator is intensifying efforts to combat insider trading amid an increase in suspicious market activity. Speaking on the same day as the raids, Rathi described the operation as a “very major” effort targeting “serious suspected criminal activity.”

Data released by the FCA in July highlighted that abnormal movements in the shares of companies scheduled for takeovers occurred in a record 41 percent of deals last year—up from approximately 38 percent in 2024. Rathi expressed concern about these figures, noting that while some share price fluctuations could be attributed to media speculation, there was suspicion that some might involve the leaking of non-public information.

He further explained that the FCA is adopting a more assertive approach in collaboration with the Takeover Panel, the body regulating UK deal activity, as well as with investment banks, brokers, and advisers who are involved in such transactions. These parties may have access to sensitive information that could be disclosed inappropriately. Rathi emphasized that leaks sometimes occur for tactical reasons, such as securing a better price or gaining commercial advantage, which may not always constitute insider trading—defined as using confidential information for personal gain.

Tackling insider dealing remains challenging due to its sophistication and the involvement of organised criminal groups operating across multiple markets globally. Rathi acknowledged that such criminal enterprises can be highly professional and profit-driven, making enforcement complex. He affirmed that the FCA is proactive but acknowledged that more work is needed to address the issue effectively.

Separately, the FCA announced that legal challenges related to its £9.1 billion compensation scheme for mis-selling car loans in the motor finance sector will proceed to a court hearing in February. Three lenders and a consumer group are contesting the FCA’s plan, which has delayed the start of redress payments intended to reach millions of motorists. The case will be heard in the Upper Tribunal.