UK FSA’s penalties policy could see enforcement fines treble
The Financial Services Authority (FSA), Britain's banking regulator, on Monday published its new framework for financial penalty-setting.
The framework, established following a period of consultation with the industry, is, the regulator said, "based on the three principles of disgorgement, discipline and deterrence."
Fines will be more closely linked to income and will be based on:
• up to 20% of a firm's revenue from the product or business area linked to the breach over the relevant period;
• up to 40% of an individual's salary and benefits (including bonuses) from their job relating to the breach in non-market abuse cases; and
• a minimum starting point of £100,000 for individuals in serious market abuse cases.
As a result, the FSA said fines could treble.
The framework, which the FSA says embodies a consistent and more transparent framework for calculating financial penalties, will come into force on 6 March. It will apply to any breaches which occur on after that date.
Click here to read the framework
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