Sharp rise in FSA fines during 2009
Commercial insurance
31st December 2009
Those businesses seeking a UK insurance policy are advised that average fines levied by the Financial Services Authority (FSA) have risen this year by 97 per cent.
Data from law firm Reynolds Porter Chamberlain revealed that the value of fines imposed by the regulator increased by 53 per cent to £34.8 million, with average charges standing at £891,000.
The average fine faced by individuals was 60 per cent higher in 2009 at £70,303, the firm reported, while analysis also showed 39 fines have been issued in the year to date.
According to partner Steven Francis, a member of the company's financial services team: "If the FSA continues to rack up the pain against the financial services sector, then at some point the sector will become scared of its own shadow."
He warned that the FSA is under pressure from "many different audiences" to punish the financial services industry in the current climate.
Companies concerned about the risk of company and individual fines may be interested in Professional Indemnity and Directors and Officers insurance.
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