In a year which saw the regulator step up it enforcement activities, the £88.8m total far outstrips last year’s £35m.
Investment banks were the main contributors to the regulator’s coffers, with J.P.Morgan, Goldman Sachs, state-owned RBS and Societe Generale contributing almost £58m.
Goldman Sachs was pulled up for weakness in controls while Societe Generale was fined for failing to provide accurate transaction reports.
J.P.Morgan was reprimanded for failing to protect client money and RBS – which is 84% owned by the UK taxpayer – was punished for failing to have adequate systems and controls.
Additionally, J.P.Morgan was slapped with a hefty fine for failure to segregate client money held by its futures and options business with JPMorgan Chase Bank between 2002 2009.
At the time of issuing the £33.3m fine in June, FSA director of enforcement and financial crime Margaret Cole said: “This penalty sends out a strong message to firms of all sizes that they must ensure client money is segregated in accordance with FSA rules.
“Firms need to sit up and take notice of this action- we have several more cases in the pipeline.”
Yesterday, the regulator fined Scottish Equitable £2.8m for a series of administrative failings including underestimating the value of customers’ future pension benefits to the tune of almost £7m.
Money the FSA makes from fines has to be passed back to the industry to ensure there is no financial incentive behind its enforcement activities.
