FSA fines set to treble in size as amount is linked to revenue
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The FSA has published a new framework for penalties which will see fines treble in size.
The regulator says the framework links fines more closely to income and will take effect from March 6.
Fines will be based on up to 20 per cent of a firm’s revenue from the product or business area linked to the breach over the relevant period or up to 40 per cent of an individual’s salary and benefits, including bonuses from their job relating to the breach. There will be a minimum fine of £100,000 for individuals involved in serious market abuse cases.
The FSA says its new policy is part of its principle of credible deterrence by imposing harder-hitting penalties that better reflect the scale of a firm’s wrongdoing.
Director of enforcement and financial crime Margaret Cole says: “We imposed record fines in 2009 but this new approach further amplifies the deterrent effect of our penalties and sends a powerful message to firms that non-compliant behaviour will not be tolerated.”
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