The well publicised LIBOR and EURIBOR issues at Barclays Bank led to an FSA fine of £59.5M.
As a result of the Barclays affair the FSA Fines Table 2012 now stands at an all time peak of £93.4M – the previous record being £89M for calendar year 2010 (in which figure £50.8M was contributed by Goldman Sachs and J.P. Morgan).
As mentioned in Regulatory Roundup 41, Enforcement fines imposed by the Regulator are returned to the industry by way of discounts to FSA fees. The bumper fines to date bodes well for a further generous discount against next years fees, whether FSA’s or FCA’s.
Or possibly not.
In a Parliamentary statement by the Chancellor on the investigation into LIBOR, the House was advised that FSA fines went to reduce the annual levy other financial institutions are asked to pay. In Mr Osborne’s view “I am far from convinced that in all cases, this is the best use of the money”.
The statement then went on to explain that a better use of the money would be to give it to the Government (“go to help the taxpaying public, not the financial industry”).
Changes to the Financial Services Bill to bring this about will be considered. The Chancellor has also asked officials to investigate whether this legislation could be applied to the fine imposed on Barclays.
