View more on these topics

FSA aims to shame the name

The FSA is to make sure that firms which break the rules pay a price in terms of their reputation rather than by increasing the levels of fines.

Chairman Callum McCarthy, speaking at an international financial services conference in London last week, emphasised the significance of the damage to a firm&#39s reputation which results from enforcement action, adding that fines can have a limited impact on companies with high turnovers.

The latest FSA annual report shows that fines by the regulator climbed to a record £12.4m in the last 12 months.

He said that fines will still have a significant enforcement role but that naming and shaming may play a bigger role. The regulator plans to be more selective in the number of cases where it resorts to a fine or takes other enforcement action.

McCarthy said this would ensure that enforcement policy was executed correctly and efficiently, with the FSA placing equal importance on knowing which cases should not be pursued as well as those which should.

He said: “What is of possibly greater importance is the public attention paid to an enforcement decision – the damage to reputation, brand and future business arising from high publicity cases, as well as the linked compensation when this arises.

“Enforcement is part of the FSA&#39s toolkit, not the most important. We use it to support our general approach of promoting markets for financial services which are fair and efficient. Its purpose is forward-looking.”


Kensington announces results

The Kensington Group has reported a strong performance in the first half of 2004, with new business volumes of more than £1bn and the mortgage portfolio now standing at £3.5bn. Kensington are increasing the interim dividend in line with a progressive dividend policy that increases returns to shareholders as the business grows. Chief executive office […]

MBO at Key after clash with parent

Key Retirement Solutions has initiated a management buyout from parent company Chesnara, formerly Countrywide, following differences over strategy. The four members of the board who have set up the £2.8m deal are managing director Colin Taylor, business development director Dean Mirfin, operations director Paul Wilson and sales director Richard Overson. They have all invested private […]

Independent view

There has been plenty of press coverage recently on the Pension Protection Fund. Laudable though the scheme is, it seems to have been badly thought through and is failing to give the whole target audience the reassurance it was designed to bestow. We now have actuaries publicly declaring their doubts over the viability of this […]


Do you agree with Sesame group chief executive Patrick Gale that only IFA networks with more than 500 RIs will survive? “No. Size is not the only factor. If they are astute enough, the smaller ones can survive.” Frank Gow, Ashwood Law“Yes. It is a continuation of what we have been experiencing in the last […]

The Downsizing Delusion: Why relying exclusively on your home to fund your retirement may end in tears

By Steve Webb, director of policy The British obsession with homeownership can have dangerous consequences. A recent survey by Barings¹ found that up to three million people of working age were planning to rely wholly on the value of their home to fund their retirement. We are not talking about people investing in buy-to-let or […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm