The Financial Services Authority is considering the use of "creative penalties" in the financial services sector as an alternative to imposing blanket fines on firms.
Head of web and media communications, Rob McIvor, says the FSA is looking at whether a system of creative penalties, similar to the one currently used in the US, is more likely to deter firms from misbehaving than blanket fines. One suggestion put forward by Margaret Cole, the FSA’s head of enforcement, in relation to City firms could involve banning a trading desk from operating for one or two months, but McIvor says Cole will consider the idea in more detail when she meets the US Securities and Exchange Commission next month. If Cole decides the system is appropriate for the UK, McI...
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