The Financial Services Authority (FSA) say that under a proposed new scheme, some of the fines that it hands out for breach of market regulations could treble in size, if the proposals are adopted for regulation in 2010.
The new approach is designed to permanently change the behaviour of those who breach market rules by imposing punitive costs on them, wiping out any profit they make from their wrongdoing, the FSA said in a statement today.
The FSA say that under the new proposal a company found guilty of breaking the rules would be fined up to 20% of the income from the product or activity deemed to at fault. Individuals found guilty of breaking rules would be subject to a minimum £100,000 fine.
“By hitting companies and individuals in the pocket where it hurts, the fines will be a stark warning to others on what they can expect to pay for flouting our rules,” said FSA director of enforcement Margaret Cole.
The new rules are open for consultation until October 21st, the FSA expect the rules to be in place by the start of February 2010.
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