The Financial Conduct Authority has levied fines for the year totalling £446.1 million. This is in contrast to £331.5 million in 2012 and £66.1 million 2011 under the previous FSA regime and reflects the tougher, proactive stance being adopted by the new-look regulator.
These figures have been released against the backdrop of the news that Lloyds Banking Group has been fined a record £28 million over 'serious failings' in relation to bonus schemes for sales staff (the figures collated for the year do not include the LBG fine).
The £446.1 million total has largely been made up of fines relating to LIBOR-rigging, payment protection insurance mis-selling, transaction reporting, mortgage and investment advice failings and the failure of firms to protect client money adequately.
Prior to December 2012, the money raised from fines would be used to reduce levies placed on the financial services industry to fund their regulation. Following implementation of the Financial Services Act 2012, these monies will now go to the Treasury.
If you would like further information, please contact Tim Pope in our Dispute Resolution team.