October saw fines totalling £7.2m, with Alliance & leicester fined £7m for misselling payment protection insurance.
BDO head of the financial services regulatory practice Fiona Raistrick says: “Time and time again, we see individuals and companies being fined by the FSA for failing to meet regulatory requirements. The penalties being levied by the FSA continue to increase as they take a tougher stance on enforcement in line with their overall policy of imposing higher penalties to achieve credible deterrence.”
She predicts that the level of regulation is to increase further.
Raistrick says: “It is imperative that companies focus on making sure their internal controls are sufficient to mitigate their risks. Having the essential controls to prevent these problems is not rocket science, it just requires a thorough risk assessment and evaluation of the supporting control framework.”