FSA Increases Fines to Target High Profile Offenders

Stephen Harris

30 December 2005

The UK’s financial regulator, the Financial Services Authority has fined fewer firms during 2005 than in 2004, but the average size of penalties has grown with its attempts to make examples of high-profile offenders. The average FSA fine was around £860,000 ($1.48 million) this year. In total the FSA collected £16.3 million from 19 cases. The previous year's average was £774,000, with 32 cases producing a total of £24.8 million in fines on both companies and individuals. There was a drop in the number of fines for inadequate money laundering controls during the year, following complaints that the regulator's aggressive tactics were forcing regulated entities into complying only with the letter of the rules. The number of FSA fines imposed on individuals fell to four in 2005 from 10 in 2004.