FSA to increase financial penalties as costs rise 10%

The FSA's total funding needs will rise almost 10% in the next financial year - to £454.7m - largely due to Solvency II and its enhanced supervision regime. The FSA expects to raise 16.2% more from financial penalties as it increases the amount it penalises firms. A total of £30.8m of penalties were collected in 2009/10 and will off-set fee increases in the next financial year. Despite the rise in funding needs, the FSA says it is attempting to minimise any fee increases by focusing on essential areas of work. Costs will rise 9.9% in total. The costs include 280 staff hired in ...