Figures released today revealed fines from the FSA – which has since been transformed into the Financial Conduct Authority (FCA) – totalled £423.2m in 2012/13.
It is a huge increase from previous years, with fines for 2011/12 totalling just £76.4m. In percentage terms, the value of the fines has increased by around 450%.
The year’s big fines included penalties for the country’s major banks for their role in LIBOR rigging, as well as UBS’ £29.7m fine over the unauthorised trading of employee Kweku Adoboli.
Retail firms were hit with fines totalling £96.8m in the 2012/13 year, before the FSA became the FCA. The regulator also banned 24 individuals, publicly censured 12 firms, and cancelled a number of Part IV Permissions.
Fines were given out for failings relating to a number of products, including UCIS, low-cost insurance and payment protection insurance.
Previously all penalties were used to reduce fees paid by the industry to the FSA, but from 1 April this year, all fines go to the Exchequer minus agreed enforcement costs.
