FSA to impose larger fines

Under the new framework ( PS10/4: Enforcement Financial Penalties), fines will be linked more closely to income and be based on:

• Up to 20% of a firm’s revenue from the product or business area linked to the breach over the relevant period;
• Up to 40% of an individual’s salary and benefits (including bonuses) from their job relating to the breach in non-market abuse cases; and
• A minimum starting point of £100,000 for individuals in serious market abuse cases.

The new penalty regime will come into force on 6 March 2010 and will apply to any breaches which occur on or after this date.

About The Author

Felix Shipkevich

Felix Shipkevich is a Manhattan-based attorney and general counsel for Shipkevich Law Firm. He has extensive experience working with the CFTC and NFA on registration, compliance, and enforcement issues for CPOs, CTAs, FCMs, IBs, and RFEDs. Felix also practices intellectual property and corporate governance law.