The FCA is to review its fines policy after the level of financial penalties imposed by the regulator has more than tripled in a year.
The FT reports the FCA has handed out a record £1.4bn in fines since April, more than triple the £425m levied in the whole of the 2013/14 financial year.
The increase is largely down to the £1.1bn in fines imposed on five banks last month for attempts to rig the foreign exchange market.
Fines have also increased because a new penalty regime, which allows for higher fines for wrongdoing found since 2010, is taking effect.
Speaking at the regulator’s enforcement conference last week, FCA director of enforcement strategy Georgina Philippou said: “This is not a penalties race. We are not competing against any other regulator in the world.”
She said the FCA will review how well the new regime is working: “We believe that we now have enough cases to pause and take stock and we plan to start a review of our penalty policy in the next financial year.”
The current regime gives the FCA the discretion to increase fines to act as a deterrent. It explicitly increased fines on banks in the forex probe because it ruled they had not learnt key lessons from the earlier Libor investigation.