View more on these topics

Massive FCA fines are the ‘new normal’

FCA interior 620x430

The era of record regulatory fines has been branded as “the new normal” as the level of penalties dished out by the FCA hits a total of £1.5bn.

The figures have been published as part of the latest Global Enforcement Review by Kinetic Partners, part of consultancy firm Duff & Phelps.

It found that the number of fines in 2013/14 fell from 51 issued by the FSA to 46.

But the average value of fines was driven two and a half times higher in 2014, from £9.9m to £36.8m.

Fines against individuals totalled £2.9m in 2014, compared to £5m the previous year.

Kinetic Partners managing director and global head of regulatory consulting Monique Melis says: “2014 saw a significant spike in the severity of financial penalties virtually across the board, as regulators have been getting tougher on both firms and individuals.”

She says average fines have been driven up by enforcement action relating to Libor and foreign exchange manipulation.

She adds: “We are now entering an era of regulatory enforcement in which the ‘new normal’ consists of exceptionally severe penalties and a growing focus on individual bad actors, the aim of which is to impact and change the culture of firms.”

Money Marketing reported last week on the lack of transparency in how the Treasury spends the fine money it receives from the FCA, which totals almost £3bn since April 2012.

Advisers have called for this money to be diverted to fund the Financial Services Compensation Scheme.



Down the plughole: Where has all the FCA fine money gone?

Mark Sands and Tessa Norman The Treasury is facing calls to revisit the way it handles FCA fines amid mounting concern about a lack of transparency in the current system. Historically, excesses in fine revenue were directed back to firms to reduce overall regulatory costs. However, regulatory fines handed out since April 2012 have passed […]

Natalie Holt Peach 250x255

MM leader: A way forward on regulatory costs?

We are in a world of record FCA fines. Only last week we saw Lloyds Banking Group hit with a £117m penalty for unfairly rejecting payment protection complaints, and last month international regulators fined five banks a massive £3.7bn in total over foreign exchange rigging, including a £248m FCA fine against Barclays. Add the Libor […]

Adamson-Clive-FCA-2013 700 x 450.jpg

Ex-FCA boss Clive Adamson joins JP Morgan and Pru

Former FCA director of supervision Clive Adamson has secured two non-executive director roles at JP Morgan and Prudential. Subject to regulatory approval, Adamson will join JP Morgan as a senior adviser and will report  to regional head of regulatory affairs Sally Dewar. Dewar joined JP Morgan in February 2011 from the FSA, where she was […]

FCA logo glass 620x430

FCA hits Lloyds with record £117m fine over PPI complaints

The FCA has fined Lloyds Banking Group a record £117m for failing to properly handle payment protection insurance complaints. The fine, issued against Lloyds Bank and Lloyds subsidiaries Bank of Scotland and Black Horse, is the largest ever retail penalty issued by the regulator. The bank is now reviewing or automatically upholding around 1.2 million […]

Three catalysts for European equities

By Rob Burnett, Manager of the Neptune European Opportunities Fund In recent weeks, the bear case for European equities has become more pronounced on the back of weaker-than-expected GDP data and deflation concerns. This softening in economic momentum has led some investors to question whether the ECB is behind the curve and indeed whether it […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. I agree that fines are on the increase and that trend will continue. My recent experience is that the regulators and in particular, the FCA continues its bullish path towards “fear-based”, or as the FCA prefers to portray it, “deterrence focused” investigation and enforcement processes. It remains a significant concern that this bullish attitude is not always backed-up by sound logical approaches to the investigation process and/or in the use of proof to which it points as evidence of failings by firms. The standards vary wildly and in such a high stakes “game” such variation is patently unacceptable. It has been said before, but he regulators must improve their approach or expect greater challenge from investigation targets in the face of the prospect of the “massive fines” referred to here.

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