The Financial Conduct Authority (FCA) fined just 18 senior managers in 2013, raising concern that the misconduct and bad practice that has led to financial scandals is not being sufficiently tackled.
The figure is 40% lower than the 30 fines handed out in 2010, despite the emergence of Libor rigging and the forex scandal. The 2013 number means that only 0.03% of chief executives or senior managers were given sanctions.
The data was obtained by London law firm Reynolds Porter Chamberlain (RPC) under the Freedom of Information Act, which questioned the low number of fines imposed, considering that the strategy of holding individuals responsible could be crucial in preventing misconduct.
However, an FCA spokesperson commented, “Holding individuals to account is clearly an area where we have put a lot of resources. It was also an area that the parliamentary commission on banking standards found that we needed to improve upon, so we will be making more proposals soon.”
But RPC argued that the financial regulator was changing the way it assess its cases, with a longer and more complicated process that is giving individuals the chance to get insurance cover to counter accusations more easily.
Richard Burger, partner at RPC, said, “Individuals have got so much more to lose and so they are much more willing to fight allegations of wrongdoing tooth and nail. Not only are there substantial fines at stake, their reputation and career are on the line. Even if they are not given a lifetime ban, the chances are they’ll never work in the City again.”
Chief executive of the FCA Martin Wheatley said earlier this month that changing the culture at financial services firms would be a “long and painful job”.
Photo: Rob Schofield via flickr
FCA plans inquiry into 30m insurance policies
UK investors being ‘ripped off’ because of lack of competition and transparency
Number of financial complaints rose by 179% in last three months
The next financial scandal? Bank of England to hold foreign exchange inquiry
Jail irresponsible bankers, say 35% of financial services execs
Like our Facebook Page
How Cities In Canada Are Addressing Climate Change
10 Tax Incentives for Businesses That are Lowering their Carbon Footprint
How to Manage Anxieties About Climate Change
Green Brands Must Understand Their Customers to Market Wisely
Key Necessities for Starting an Eco-Friendly Freelance Business
6 Ways To Overcome Cash Flow Challenges as a Green Business
Going Cashless Lowers Our Carbon Footprint and Has Other Pros and Cons
How to Be as Eco-Friendly as Possible on a Trip to New York
Why Brazed Plate Heat Exchangers Are Eco-Friendly
6 Steps For Making Crypto & Blockchain Eco-Friendly
Building a Career in Green Construction: Tips and Insights
Top 5 Benefits of Workplace Sustainability
The Role of Smart Technology in Managing EV Charging Stations
4 USA Vacation Destinations for an Eco-Friendly Trip
6 Wastewater Management Tips to Reduce Water Pollution
Why Internet Faxing Is A Sustainable Business Move
5 Ways Eco-Friendly Employers Can Boost Efficiency
What to Look for When Choosing an Eco-Friendly Locksmith
Flexible Return Policies Can Make Retail More Sustainable
Using Green Patents to Drive Sustainability & Eco-Friendly Designs
- Environment3 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment10 months ago
4 Countries That Have Banned Single-Use Plastic
- Features9 months ago
5 Huge Support Tips for Eco-friendly eCommerce Brands
- Environment7 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?