FCA fines up tenfold in just a year as regulator targets individuals

Fines rise to £229m as FCA makes individuals liable for misconduct

The value of fines imposed by the Financial Conduct Authority (FCA) rose tenfold this year to £229.4m, up from £22.2m in 2016, as it clamps down on individual misconduct, says City-headquartered professional services firm RPC.

RPC says that the total value of fines issued by the FCA peaked in 2014, when £1.5bn in penalties were issued.

RPC says that 67 per cent (8 out of 12) of the fines issued by the FCA in 2017 were levied against individuals rather than institutions – up from 63 per cent last year. This may be a result of the FCA’s ongoing efforts to increase pressure on individuals, rather than just issuing fines to businesses. 

RPC explains that the FCA introduced the Senior Managers and Certification Regime (SMCR) to crack down on individual misconduct. The SMCR makes senior managers liable for any wrongdoing within their business unit, and will be extended in 2018 to cover the majority of financial services firms.

 RPC says that the recent increase in fines also shows that the FCA has now fully recovered from the organisational disruption of a period that saw the FCA run by three different CEOs in just over a year.

Richard Burger, Partner at RPC, says: “A tenfold increase in fines is a reminder to the City that the FCA’s ability to impose swingeing financial penalties is significant.”

Social Bookmarks