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FCA warns more fines are on their way

by Danielle Levy on Jul 18, 2014 at 10:51

FCA warns more fines are on their way

The Financial Conduct Authority (FCA) has warned the banking sector to prepare for further fines.

According to the Financial Times, FCA chief Martin Wheatley (pictured) said he found the banking sector's ability to 'constantly surprise with bad conduct' alarming, pointing to the recent news that banks have sent out letters that appear to be from lawyers or bailiffs to get clients to pay off debts, when they are actually from the banks themselves. Six years after the banking crisis, he said it is disappointing that banks still have such conduct issues. 

He warned banks should prepare for large fines. Wheatley added the FCA is aiming to complete investigations into allegations of foreign exchange manipulation by 2015. He said investigations into Libor-rigging were also progressing.

The chief also noted the FCA has entered into discussions with banks that operate 'dark pools' used by high-frequency traders, after Barclays faced allegations from the New York Attorney General that it  misrepresented benefits to big institutional clients, including pension funds.  

5 comments so far. Why not have your say?

A Bit Left Field

Jul 18, 2014 at 11:05

Could we ever get to the point where we have to conclude that repeated, enormous fines simply highlight that the FCA is failing to regulate?

I can't help thinking that the separation of corporate from personal responsibility is the root cause of all of this - make all concerned personally liable and things might well change.

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Jul 18, 2014 at 12:07

If the rules are so complicated that a competent individual cannot understand them, then fines become optional for the regulator, and can be turned on and off at will.

It's not that I object in principle to banks being fined, but when the same entity is the law drafter, the rule-maker, the record-keeper, the investigator, the prosecutor, the judge and the sentencing body, and there is no avenue by which targets can seek legal redress, then abuses of power will follow, just as night folllows day.

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Ian Lees

Jul 19, 2014 at 09:04

To quote Buddy Holly " That'll be the Day ". I wonder How much the Banks will negotiate in fines ( or as cynics might compute illegal protection payments - made legal - to cover up deceit and Fraud ) this time ? I wonder how many trips to the Grove as " inducements ", by Banks . . . . for the FCA this time ?

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Jul 19, 2014 at 13:44

Just listening to Test Match Special & hearing that the Trent Bridge wicket in 1st Test has been proclaimed as being a BELOW PAR wicket and that #ICC has imposed a £10,000 fine. I think it was Graeme Swann & Michael Vaughan who asked - "What happens to the proceeds of the fine? Where does the money go?".......ahhhhhh there you have it .

It doesn't go to paying for a replacement square, new equipment for the groundsman but it's a given certainty that the money goes to the #ICC apparatchik apparatus.

The analogy is perfect and epitomises the pointlessness of the whole FINE approach.

Come clean FCA as you are behaving like #ICC & other regulators who are destroying the fabric of what you're supposed to be protecting and assisting.

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Ian Lees

Jul 21, 2014 at 09:22

It would seem reasonable to assume the fines are paid into a large Fat Cat known as a " kitty " and used to pay for extravagant outings and sleep overs at The Grove Hotel and Spa in Watford - and other inducements. Strangely fees continue to rise and fines are continuous as you would expect when companies negotiate their own penalty . Is it a fine or is it protection money- to hide and salt away other misdemeaners ?

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