Regulatory and risk technology firm outlines research showing staggering increase in fines for first half of 2015
The UK’s Financial Conduct Authority (FCA) has levied fines of more than £800 million for the first half of 2015, according to research by Wolters Kluwer Financial Services. This figure is six times the amount for the same period in 2014, the global regulatory and risk technology firm added.
“Wolters Kluwer Financial Services monitors penalties issued by the FCA and whilst it is not an exact science it does allow organisations to access the level of fines being levied. It also reinforces the message to the industry as a whole that the regulator means business,” said Mary Stevens, Manager of Regulatory Analysis at Wolters Kluwer Financial Services in London.
Since the Financial Services Authority (FSA) was replaced by the FCA to oversee regulatory conduct, there has been a staggering increase in the value of financial penalties issued against firms and individuals who are in breach of the regulators’ conduct rules and principles. The £819 million in fines recorded for the first six months of 2015 compares to just £335 million for all of 2013, explained Paul Lyon, Director for EMEA at Wolters Kluwer Financial Services in London.
“The data represents a tool for Governance, Risk and Compliance Managers keen to stress the importance of regulatory compliance to their senior management teams,” Stevens added. “And this is of particular importance given the call for even more personal penalties to be levied against senior management rather than the firms themselves.”
Principle for Business 3 (Senior Management Systems & Controls) and Principle for Business 7 (Communication with Customers) figure highly in the recent data, Wolters Kluwer Financial Services found. “This shows that the FCA is committed to rebuilding market confidence and protecting consumers,” Stevens notes.