Fines could treble under new FSA rulings

6 July 2009

Some of the fines imposed on companies for breaching market regulations could treble in size, the UK's Financial Services Authority (FSA) has stated.

The body proposed a new method for calculating financial penalties that would see firms found guilty of wrongdoing fined up to 20 per cent of their income.

Under the changes, profits made from breaching regulations would also be recouped and there would be a minimum fine of $161,000 for individuals found guilty in market abuse cases.

"By hitting companies and individuals in the pocket where it hurts, the fines will be a stark warning to others on what they can expect to pay for flouting our rules," director of enforcement at the FSA Margaret Cole stated.

Last week the FSA banned Abdul Karim, an Essex-based mortgage broker who operated as Monopoly@States, from trading after it emerged that he had applied for a mortgage using false information regarding his income.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development