The Financial Services Authority (FSA) publishes new plans

To create a consistent and more transparent framework for calculating financial penalties which could mean some fines treble in size!

The new plans reflect the FSA’s determination to change behaviour and address concerns that firms are repeatedly failing to improve standards (e.g. in relation to mis-selling to consumers and market misconduct).  They will also ensure that fines better reflect the scale of the wrongdoing and that any profits made from the breaches are clawed back.

Under the new proposals, fines will be linked more closely to income and be based on:
Up to 20% of the company’s income 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;
A minimum starting point of £100,000 for individuals in market abuse cases.

Full Details can be found at http://www.fsa.gov.uk/pages/Library/Communication/PR/2009/091.shtml