Home Stock & SharesBanks Bank fines touch their lowest since pre-financial crisis period

Bank fines touch their lowest since pre-financial crisis period

by Jonathan Adams

Fines imposed on the City have fallen to their lowest level since before the financial crisis, new research reveals.

Around £22.2million of penalties were levied by City regulator the Financial Conduct Authority in 2016 – a huge fall from £905.2million last year.

In 2007, the eve of the banking crisis, firms were fined just £5.3million. The record year was in 2014 when more than £1.5billion was levied on financial firms.

The lower fines have coincided with the appointment of former Bank of England deputy Andrew Bailey as the head of the FCA in July.

He replaced Martin Wheatley, who had been brought in after the financial crisis as a reformer who sided with consumers.

However, while he was credited with dealing with a number of the toxic issues of the past that beset the industry, he was criticised for being too tough on the banks and preventing them from building their business for the future.

A spokesman for the FCA said: ‘The level of fines reflects the degree of misconduct in our market and so a reduction of fines should be viewed as a positive.’

This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Related News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Know more