UK: FSA Says Penalties Too Low, May Increase for “Credible Deterrence”

Hector Sants, the FSA’s CEO, said in a speech in London yesterday that penalties imposed by the FSA on financial companies and individuals who violate regulations have been too small in the past.  The FSA will be examining over the next few months how to change its framework to impose higher penalties that will help achieve “credible deterrence,” he said.

Bloomberg reports that Sants also added that the test must be “whether others would consider it reasonable” and “whether it was a reasonable decision at the time.”

Read the Bloomberg article