View more on these topics

FSA fines up 514%

The value of fines handed down by the FSA in the last year jumped 514 per cent to a record £27.3m.

City law firm Reynolds Porter Chamberlain has calculated that the average fine handed down by the FSA in the financial year 2008/09 came to £497,000 compared with £212,000 in the previous financial year. Even after taking out fines handed down worth more than £1m, it found that the average fine still increased 20 per cent from £111,000 to £133,000.

The number of fines handed out by the financial regulator more than doubled also over 2008/09, to a record 55. The FSA also prohibited more individuals or firms, 46, from carrying out regulated activity than in all previous years put together.

RPC regulatory partner Jonathan Davies says: “The FSA has been under significant public and political pressure this year for failing to foresee problems with failing banks and financial institutions. It has reacted to criticism by instituting a ‘get tough’ approach.

“The FSA is taking an aggressive approach towards mortgage advisors, probably because falling house prices have exposed fraudulent market practices which remained hidden when prices were rising.”

Davies says that more than a year can pass after the regulatory lapse of a firm or individual before the FSA publishes a ‘final notice’ of any consequential enforcement activity it took.

As a result, he says that many credit crunch fines have yet to surface. He says: “Any enforcement activity against financial institutions or their directors who failed as the credit crunch took the ground from under them will not feed through in FSA fines until next year or even the year after that. It seems likely that enforcement activity will continue to increase for several years to come.”


Aegon £30m tennis deal ahead of RDR changes

Aegon says its new sponsorship deal with the Lawn Tennis Association is designed to build the brand in anticipation of the expected retail distribution review changes.The firm has signed a five-year deal, thought to be worth £25m-£30m, which will run from this summer through to 2013.As lead sponsor, Aegon will be involved in all aspects […]


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. so what..
    The FSA came under critisim for failing to shortcomings of the banks and financial institutions, so why are they fining advisors? Advisors wouldn’t have been able to get away with half of the practises they have if the banks/lenders were doing their underwriting correctly, or are they not reasponsible for that either? Everytime we read of another mortgage broker/advisor being banned for mortgage fraud, do the FSA then prosecute the lender for having such lapse underwriting policies in place, enabling them to commit the crime in the first place? Probably not….. The level of fines now being given out doesnt mean anything other than the FSA brought in more money…….does mean they are any more effective …..or that they are regulating the right people

  2. The Mystery Shopper for IFAs 8th June 2009 at 4:12 pm

    FSA bonuses and pay
    Fines are nothing but ways to skank the industry. just like the MPs expenses. They do everything in secret with no transparency.

  3. FSA Fines.
    Increasing the number and amount of fines is just a smoke screen, allowing the FSA to slip away from having to face up to it’s failings.
    Just the same as brokers being blamed because the lenders underwriters failed to do their job properly.

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