The Financial Services Authority (FSA) trebled the value of its fines in the year to 31st March 2011, to £96.7 million.
The total was up from £33.1 million in the previous 12 month period and according to research from City law firm, Reynolds Porter Chamberlain (RPC), the regulator handed out 15 fines above the million pound mark, worth £86.9 million in total.
RPC’s financial services team partner, Jonathan Davies, comments: “There has been a steady increase in the number and value of fines imposed since September 2008, but this is by far the biggest jump.”
Looking ahead to the FSA restructure that will see the formation of the Prudential Regulation Authority and the Financial Conduct Authority, Mr Davies says there are significant concerns that the two new regulators will compete with each other to set the highest fines.
In addition, RPC explains that an FSA fines policy implemented last year will push up the amount of fines in future years.
The policy only applied to conduct taking place after the change, so all of last year’s fines were handed out under the old system.