FSA Consults On Increased Enforcement Powers

On 14 October 2010, FSA issued a consultation paper outlining its proposals on amendments to the Decision Procedure and Penalties Manual (DEPP) and the Enforcement Guide (EG).  The consultation will run until 14 December 2010 and a policy statement is expected to be published by FSA in January 2011.

There are two issues which are likely to be of particular interest to the industry.  Firstly, FSA proposes introducing a new rule prohibiting authorised firms from paying a financial penalty imposed on a present or former employee, director or partner of a firm or an affiliated company.  FSA believes that individuals would be less likely to breach FSA rules if they knew that their employers would not pay the financial penalty imposed on them.