News: Soaring FSA fines underline tough new stance on non-compliance
The Financial Services Authority (FSA) runs the risk of appearing arbitrary as it delivers on its promise to get tough, according to law firm Reynolds Porter Chamberlain (RPC).
The regulator dished out £33.1m in fines between April 2009 and March 2010. RPC said eight £1m-plus fines worth £27.5m were issued, up 32% from £20.8m the previous year, while the average fine increased by 59% to £788,571 from £497,455.
As reported in Insurance Age (April 2010, p8), the news followed the watchdog's announcement that its new income-related penalties policy, which was implemented on 6 March, could result in a three-fold increase in enforcement fines.
Steven Francis, partner in RPC
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