June 20, 2016
The value of Financial Conduct Authority fines against individuals has more than doubled over the last year, but the value of fines against companies has dropped by 37 per cent.
According to research, conducted by law firm Clyde & Co from analysis of the FCA’s register of fines, fines against individuals came to a total of £17m this year, compared with £7m in 2014 to 2015 while fines against companies dropped to £880m from £1,403m the previous year.
Clyde & Co’s research also showed the total value of fines handed out by the regulator has dropped by more than a third – 36 per cent – this year. The FCA imposed fines amounting to a total of £898m across 2015 to 2016 compared with a record £1.41bn across 2014 to 2015, a 36 per cent decrease. Although, this year’s total is still more than double that of 2013 to 2014’s £421m.
According to Clyde & Co, the reason for the sharp drop in the value of fines may be because the fallout from major banking scandals is now drawing to an end. John Whittaker, partner at Clyde & Co, said although it is difficult to draw firm conclusions from just three years of statistics, the findings suggest the regulator appears to be turning its focus towards individuals. He added this is supported by recent regulatory changes which are aimed at holding individuals to account for any behaviour that strays outside of the regulator’s rule book.