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FCA fines slump to lowest level since financial crisis

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Financial services fines have fallen to their lowest annual level since 2007 but FCA chief executive Andrew Bailey argues this does not mean the regulator is going soft on banks.

The Guardian reports that year to date, the FCA has imposed a total of 23 fines worth £22.2m, down from 40 in 2015 worth £905m.

The amount issued has fallen from the last two years which saw substantial penalties for Libor and foreign exchange rigging.

The FSA issued £5.3m in fines in 2007, which rose to £22.7m in 2008 and increased to a peak of £1.5bn in 2014.

Aviva received the biggest fine of the year so far at £8.2m for client money failures.

Bailey said: “If we were to maintain the level that we had a few years ago, it would imply we were having something on the level of Libor and foreign exchange every year. If that happened, we would be asking ourselves: ‘What is going on?’ We would need a major blow-up every year to maintain that level of activity and that isn’t our objective.”

Law firm Norton Rose Fulbright partner Peter Snowdon told the newspaper: “City firms think there has been a change in approach and that the new regime wants to be seen as less strident than the last one. Even taking into account the very large fines last year, that change is arguably reflected in the drop-off in fines.”

No UK bank has been fined this year.

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  1. As fines from FCA have “slumped to their lowest level since financial crisis”, I.E 2008 – and on the basis “fines are negotiable “, by the large companies, banks insurance companies and other perpetrators ( perp e traitors ), – which are in fact an “arrangement of associated transactions”, – which are passed on and – paid by the Victims. As these fines would appear to be, maximised under the Conservative Party as Government – and people have lees confidence in the scams and tricksters – and are less likely to go into the bank, along with the unknown amounts of fraud through the internet banking – the Regulators remain lacking in skill, lack of knowledge, remain in force, largely incompetent – are still arrogant and officious, prefer conflict and they have not addressed the issues – preferring to side step them and lack transparency – or openess and they have failed the general public, the consumer. The problems are deep rooted – the unsustainable systems and the pyramid ( multi level Marketing ) business structures rely on commissions and percentage fees – which introduces bias and churning of products, policies and investment funds. The lack of Corporate Governance in large financial institutions – at the highest levels along with the bonus structure down through the Pyramid Structure and regimes – have not been addressed. From FIMBRA, the PIA FSA FCA – the same arrogant incompetent regulators have failed. The reason is, these are merely the Government’s ( currently the CONservative Party ) Ponzi schemes – designed to provide employment for the failed regulators and their employees through the revolving door – of corrupt practices – to continue unabated, or more properly encouraged – raising costs and taxes for this unfortunate and incompetent CONservative party, and their MP’s. Like the NHS money is removed by “associated transactions”, which claim to be legal – remain unchallenged and are – paid to the Government – and their “colleagues ” – and removed from patients in the NHS and victims of fraud in Fiancial Services. The lack of control by Government and their failure to carry out their duties -are in my opinion a ” Treasonable Offence”. Greater minds than I, are fully aware, and do nothing !

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