FSA proposes bigger fines to achieve credible deterrence
06 July 2009
FSA consults on changing policy on the determination of the level of financial penalties and on the alternative approaches where a person claims that paying a financial penalty may result in serious financial hardship.
The full framework will consist of the following steps:
- Removing any profits made;
- Setting a figure to reflect the nature, impact and seriousness of the breach;
- Considering any aggravating and mitigating factors;
- Achieving the appropriate deterrent effect;
- Applying any settlement discount.
This approach is the latest stage of the FSA’s credible deterrence strategy and will apply to all enforcement actions including against firms, individuals and listed companies.
The total fine imposed will also take into account other factors, such as the desired deterrent effect and any settlement discount
The consultation deadline is 21 October 2009 and any new policy is likely to apply to breaches committed after February 2010.
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