The level of regulatory fines imposed on individuals working in financial services has shot up 77 per cent over the last two years, research has revealed.
The Financial Times reports research from law firm Brown Rudnick, which shows the FCA and FSA levied £35.5 in total fines on individuals in 2012 and 2013. This compares with £20.1m in 2010 and 2011.
The regulator has also imposed more lifetime bans, with 72 people banned from working in financial services in 2013 compared to 66 in 2012.
Brown Rudnick partner Peter Bibby, who previously worked at the FSA, told the newspaper: “Fining institutions is all very well, but there is a suspicion they tend to accept the cost as a risk of doing business. Increasingly, whenever an investigation is opened into a business, the FCA will be looking to haul managers over the coals.”
The FCA has sought to bring in tougher rules after the Parliamentary Commission on Banking Standards suggested senior accountability needed to be strengthened following the financial crisis.
The regulator is introducing a tougher senior persons regime as part of an overhaul of its approved persons regime for banks and investment firms.
An FCA spokesman told the FT: “Holding individuals to account is clearly an area where we have put a lot of resources into. It was also an area the PCBS found we needed to improve upon, so we will be making more proposals soon.