FSA to ramp fines for City rulebreakers
City PM
Published Jul 6, 2009 Reviewed Jun 30, 2026 ✓ Reviewed by citations.press editors
The Financial Services Authority proposes a minimum fine of £100,000 for individuals caught insider dealing.
100000 GBP · minimum fine for insider dealing
Financial Services Authority, regulator
A case‑study executive was charged £25,515 for failings that put customers at risk of financial loss.
25515 GBP · charge to executive
Financial Services Authority, regulator
Companies could be fined up to 20% of their incomes from the products linked with the fine under the new regime.
at most 20 % · company fine relative to income from linked products
Financial Services Authority, regulator
The consultation on the new fine regime ends on 21 October.
Financial Services Authority, regulator
The new rules are likely to take effect from February 2010.
Financial Services Authority, regulator
The Financial Services Authority (FSA) plans to treble penalties for serious rule breaches and impose a minimum fine of £100,000 for individuals caught insider dealing.
3 times · penaltiesat least 100000 £ · fine for individuals caught insider dealing
Financial Services Authority, City watchdog
A consultation paper from the regulator proposes that the most serious abuses could result in companies facing fines of up to 20 per cent of their incomes from products linked with the fine.
less than or equal 20 % · fines for companies
regulator
Alliance & Leicester was recently fined £10m for payment-protection insurance failings, a figure that would have been closer to £30m under the new regime.
10000000 £ · fine for Alliance & Leicesterabout 30000000 £ · hypothetical fine for Alliance & Leicester under new regime
Financial Services Authority, regulator
Individuals carrying out FSA-regulated activities could face fines of up to 40 per cent of their income for failing to properly enforce regulatory controls.
less than or equal 40 % · fines for individuals carrying out FSA-regulated activities
Financial Services Authority, regulator
In a case study provided by the FSA, an executive was charged £25,515 for failings that put customers at risk of financial losses.
25515 £ · charge for an executive
Financial Services Authority, regulator
CITY watchdog the Financial Services Authority (FSA) has unveiled plans to treble penalties for serious breaches of its rules, and called for individuals caught insider dealing to face a £100,000 minimum fine.
A consultation paper from the regulator proposes a beefed-up regime in which the most serious abuses could land companies with fines of up to 20 per cent of their incomes from the products linked with the fine.
The severe-fine push comes after FSA chief executive Hector Sants has pledged an end to the era of “light-touch” regulation, after the body was blamed for failing to prevent the climate of excess that triggered the credit crunch and associated frauds.
FSA enforcement head Margaret Cole said the higher fines come as part of an ethos of “credible deterrence”. She said: “By hitting companies and individuals in the pocket where it hurts, the fines will be a stark warning to others.”
Alliance & Leicester was recently fined £10m for failings on its payment-protection insurance, but that figure would have been closer to £30m under the new regime.
As well as the minimum fine for market abuses like insider dealing, individuals carrying out FSA-regulated activities face fines of up to 40 per cent of their income for failing to properly enforce regulatory controls.
In a case study provided by the FSA, an executive is charged £25,515 for failings in which customers of his firm were put at risk of financial losses on a product it sold them.
The consultation ends on 21 October and the rules are likely to take effect from February 2010.
