UK?regulator the Financial Services Authority announced on
July 6 new plans to achieve credible deterrence by making fines
for breaches of rules reflect the extent of the wrongdoing,
meaning the cost of many fines could double or treble in
The purpose of this new scheme is to amend behaviour and
address concerns that firms have repeatedly failed to improve
standards, for example by mis-selling to consumers and market
misconduct. The FSA is also determined to stop those who commit
breaches from profiting by them.
Market participants may comment on the proposals until
October 21 and the policy is likely to be introduced in
According to the proposal, the size of fines will also be
closely linked to an individual’s or
firm’s income, with the following guidelines: up
to 20% of a company’s income; in non-market abuse
cases, up to 40% of an individual’s salary and
bonus; and a minimum of £100,000 in market abuse
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