FSA fines double, to total over £66m, in a year

By 31 August this year the regulator had fined companies and individuals £66,798,197, double the £35,005,523.34 imposed during the whole of 2009.

The fines represented more than a ten fold increase on the amount of fines the FSA imposed in 2007 which was £5,341,500.

Mary Stevens, manager of the regulatory group at Wolters Kluwer, said the volume of fines issued by the FSA had risen greatly over the last few years and there had been a huge increase in the number and type of firms being fined.

She said: "The catch phrase we have all come to hear 'no firm is too big to fail' has certainly been borne out by the city regulator who has clearly reset its sights in the last two years on larger financial services firms especially the banks, many with well known high street names.

"However, whilst recent headlines have been dominated by the big banks and their failings the FSA is still chipping away at the smaller firms focusing attention particularly on IFA and mortgage brokers who have come under increased scrutiny for fraud and senior management failings.

"The FSA is clearly taking penalization of firms in breach more seriously than in 2007 when it appeared to be spending more time on the markets in financial instruments directive (Mifid) than enforcement suggesting a lack of multi-tasking abilities.

"Whilst the FSA’s renewed attention on enforcement and penalties is welcomed some may also argue that it's far too late and it is more a case of shutting the barn door after the horse has bolted.

"That said, our belief is that days of harsher regulatory enforcement are here to stay."

A spokesperson for the FSA said: "Credible deterrence means that firms face tougher enforcement action and larger fines are part of that."