LONDON (ShareCast) - The city watchdog is proposing to hike penalties for breaches of market regulations, with some fines set to treble in size.
The Financial Service Authority (FSA) said firms could be fined up to 20% of income, while up to
40% of an individual's salary and benefits could be taken.
Individuals guilty of market abuse will be fined a minimum of £100,000.
The FSA said the plans reflect its determination to address concerns that firms are repeatedly failing to improve standards. They will also ensure that fines better reflect the scale of the wrongdoing and that any profits made from the breaches are clawed back.
Margaret Cole, director of enforcement at the FSA, said: "These proposals are an important step in pushing forward our ethos of credible deterrence."
"By hitting companies and individuals in the pocket where it hurts, the fines will be a stark warning to others on what they can expect to pay for flouting our rules."
"Moving to this new framework will enable our enforcement policy to continue making a real difference to consumers and to changing behaviour in the financial services sector," she added.
The consultation period will close on 21 October 2009 and any new policy is likely to apply to breaches committed after February 2010.
The FSA's biggest fine to date was a £17m penalty against Royal Dutch Shell (Amsterdam: RDSA.AS - news) for market abuse in 2004.
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