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Govt donates £1m from FSA fines to military charity

David Cameron Speaking 480

The Government is donating £1m of money collected from FSA fines to the military charity Fisher House, according to The Sun.

The money comes as part of a £35m pot allocated to the armed forces by prime minister David Cameron during the Conservative party conference in October.

In the wake of the Libor rigging scandal, chancellor George Osborne ordered all FSA fines to be directed into the public purse instead of reducing industry fees.

The Sun reports that Cameron has set up a committee of senior ministers and charity officials to decide how to spend the remaining £34m.

Cameron says: “It took about two minutes for the chancellor and I to decide what we wanted to do with the money from bankers who have been misbehaving. We wanted to know what more we could do for the wonderful people who serve our country.”

Fisher House is set to use the extra money to build homes for military families so they can stay close to relatives in Birmingham’s Queen Elizabeth Hospital.

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. Has anyone mounted a legal challenge to this?

    The FSA is an ‘independent’ body funded by industry levies.

    If the Treasury is able to steal fines surely this proves that the FSA isn’t independent and should therefore be funded by taxpayer?

  2. as part of the military covenant this should be beind done already thru taxes, nit redirection of fines which should be covering fsa opersting costs. this is wrong.
    plain robin hood politics.

  3. When we see the cost of the regulatory structure going up and many people leaving the industry due to either increased costs or simply not wanting to remain in a highly regulated environment any longer it strikes me that we could be shooting the goose that laid the golden egg.

    I know that financial services and particularly the banking sector has a lot to answer for but reallocating funds to a completely different part of government spending is frankly wrong. I am fully supportive of military charities and indeed recognise their commitment and sacrifice. I also remain concerned however that these fines are meant to go towards the cost of the regulatory structure and indeed compensating consumers who have suffered financial loss. Maybe the government would like to explain to investors who have suffered a financial loss why there may not be enough money left in the pot particularly if the level of advisers and firms drops significantly.

  4. I give up, what’s the point in staying in this industry? If I’m not funding some charity, I’m fund pension shortfalls or some other ridiculous scheme someone has thought of!! God help us all in the dole queue!

  5. As ananymous says this is illegal in my view.

    Your pockets will continue to be picked by all and sundry.

  6. I commented on this when it was first mooted and my stance is the same. I have respect for the armed forces but if they need additional support then the taxpayer should provide that support.

    Why not fines for medical negligence, or speeding fines or public drunkeness. What is the connection between financial services and the armed forces?

  7. All parts of the finance industry pay a levy which goes to protect the public. When penalties are charged against rogue financial organisations etc then those penalties should be used to reduce the levy. If this is not done, then we are paying out the levy, we are paying out extra when claims are made by the public, and we do not get the benefit of the penalties, A triple whammy.

    All credit to our military but they should be completely funded by the Government, and there should not be any necessity for charities or redirection of the penalties. You might as well say that the penalties will be used to fund foreign aid, or teacher’s pensions, or MP’s expenses. There is no logic whatsover to this.

  8. Hold on it says “according to the Sun”

  9. Worried? Very Much So! 6th December 2012 at 6:40 pm

    Its democracy in action but not as we know it.
    The government get the unaccountable, unelected, unrepresentative FSA Stasi to do its hatchet job of raking in massive corporate fines to redistribute wealth and welfare to the poorly funded military (lol -by all accounts, Mr Minster, defence budget spending is the realm of and accountable to the tax payer!). So the Junta is the only one with any say as to where these funds get directed? Naturally govt thinks it will go down well with public who dont pay for this. However, everyone – including the victims in the financial services industry who pay exhorbitant FSA member fees- should be concerned in the overbearing no longer covert ways the FSA extort money from totally unrelated financial services work and redirect this to others. This is the perfect crime – the FSA and the government have perfected art of state thuggery and robbery worse than any great train robbery heist.

    If this is true thank goodness for the Sun’s reporting of this. It does have a role to play after all in our freedom of press in our society in reporting things the FSA and government may want to keep quiet about – a role other than shawdowing royals or harassing celebrities or victims of crime? Headline was probably … “Win, win, win – he who dares cross the FSA wins bonus for our boys – those good ole bad financial services chaps at it again this time helping our troops!!” At least giving the vote to convicts will allow prisoners more rights than financial services workers who currently have no say other than what the mighty FSA juggernaut inflicts upon them. UK Financial services is easy meat given it is the most oppressed, ill-treated in the world, devoid of any notion of rights, justice and accountability. Evidence is insurmountable. Where are you Harry Tuttle we need your help fast to lead the resistance – Information Retrieval must self implode at some point?

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