FSA unveils tougher fines for financial wrongdoing

 

The FSA is proposing tougher penalties for financial wrongdoing, with some fines set to treble in size.

Under the proposals, fines for misbehaviour such as misselling to consumers will be tied more closely to income. Financial institutions could face fines of up to 20 per cent of their revenue from the product or business area linked to the breach. Offending individuals, on the other hand, could lose up to 40 per cent of their salary, with a minimum starting point of £100,000.

"These proposals are an important step in pushing forward our ethos of credible deterrence," Margaret Cole, the FSA's head of enforcement, said. "By hitting individuals and companies in the pocket, the fines will be a stark warning to others on what they can expect to pay for flouting our rules."