A study by Reynolds Porter Chamberlain (RPC) showed that FSA fines totalled Â£34.8 million while the average fine reached Â£891,000, an increase of 97 per cent from 2008âs amount.
Fines imposed on individuals jumped by 60 per cent to reach Â£70,303 in 2009 from the Â£43,854 recorded in 2008.
Steven Francis, partner in RPC's Financial Services team, said: âThe FSA is playing to many different audiences and unfortunately for financial services companies most of them want the FSA to punish the sector."
"The FSA seems to be looking to impose ever bigger fines and some people have started to ask if there is a certain amount of grandstanding in these fines, especially with the Conservative Party threatening to break up the FSA."
He warned that the financial services sector could become âscared of its own shadowâ if penalties continue to rise.
Further findings from the study showed that there were eight fines over Â£1 million issued against companies working within the industry during the year.