FSA fines could treble in size to act as a ‘credible' deterrent to firms who breach the rules.
The regulator says it wants to create a consistent and transparent framework for calculating penalties, and ensure firms do not profit from wrongdoing. In May this year, chief executive Hector Sants told firms to be ‘very afraid’ of the regulator as it made plans to step up its enforcement programme. Trebling fines is intended to address concerns some firms are repeatedly failing to improve their standards, and ensure any profits made from breaking the rules are clawed back. Proposals include, making fines of up to 20% of the income from a product or business area linked to the breach, u...
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