FSA levies record £98.5m final notice fines

FSA levies record £98.5m final notice fines


The Regulator has published a report which reveals a record year in final notice fines.

The 2010/11 figures show that the Financial Services Authority (FSA) is continuing with its long term strategy of ‘credible deterrence’. 

The published report which details enforcement investigations and their outcomes reveals that the FSA has taken action against 110 non-compliant firms. 

The firms that the FSA took action against were for threshold condition (TCT) breaches which resulted in published final notices or supervisory notices.

Adair Turner, FSA chairman, said: “The past year has seen further progress on the major changes in regulatory and supervisory approach already underway at the FSA, alongside our preparations for the structural changes announced by the government last June. We will remain focused on our statutory objectives until the formal move to the new structure and have continued to make strong progress in delivering our priorities. This wouldn’t have been possible without the commitment and professionalism of our staff.

“it is also important to recognise that there is still a great deal of regulatory work to be completed at an international level. We will continue to be at the forefront of that process, which will build on much of the work we have delivered here in the UK since the financial crisis.”

Hector Sants, FSA chief executive, said: “Over the last 12 months, the FSA has continued to operate in a climate of economic fragility. Our principal focus has thus been on maintaining the high level of supervisory activity required to ensure the stability of firms in the system.

“In addition we made considerable progress in advancing our new proactive approach to consumer protection while undertaking the necessary work to prepare for the regulatory reforms.”

The FSA investigated and concluded ten cases relating to unauthorised business which totalled £100 million.

The firms investigated were involved in pension switching, unsuitable sales and mortgage fraud. Forty-six individuals have been banned from the financial services industry.

The total £98.5 million fines included the highest fine against a firm with totalled £33.3 million, JP Morgan Securities, and the highest fine against an individual of £2.8million against Simon Eagle.



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