UBS was penalised £29.7m yesterday for its failure to stop rogue trader Kweku Adoboli who was jailed for fraud last week.
The Financial Services Authority confirmed its biggest ever fine of £59.5m on Barclays in June for Libor-rigging helped push the tally up. In fact year-on-year, fines have been steadily increasing with £89.1m imposed in 2011.
However, the government decided to divert the revenue from all FSA fines to Treasury coffers, back-dated to April, so the fines are no-longer used to offset the industry’s regulatory fees. Now, all fines, after FSA expenses, go direct to the Treasury.
A spokesman from the FSA said:”Recorded trends point to a trend for larger fines and more intrusive enforcement actions.”
Cameron said he didn’t feel it was “fair” for fines from banking scandals to go back into the same industry.
