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TAKING ACTION AGAINST FIRMS THAT DO NOT MEET OUR STANDARDS


Strong and decisive enforcement will be vital to help make sure firms put consumers at the heart of their business and markets are sound, stable and resilient. The agenda of credible deterrence will remain central to our enforcement approach.


As it is often the most public action we take, enforcement will help reinforce and promote our priorities, and we will aim to get better outcomes for consumers from the financial services industry.


We will build on the progress already made and we are committed to:


• bringing more enforcement cases and pressing for tough penalties for infringements of rules;


• pursuing more cases against individuals and holding members of senior management accountable for their actions;


• pursuing criminal prosecutions, including for insider dealing and market manipulation in appropriate cases; and


• continuing to prioritise getting compensation for consumers.


We will take robust action to tackle unauthorised business, working closely with other agencies, and keeping consumers informed about the dangers they face from these firms.


In addition to the new powers available to us, there will be changes to our culture and in how likely we are to pursue action.


In particular, we intend to work more closely with other FCA departments to address the causes of problems and to prevent risks from materialising, alongside taking action once poor conduct has occurred and problems have arisen.


Building on the FSA’s enforcement work


More cases and tougher penalties


• The three largest FSA fines on firms and the three highest on individuals have all been issued in the last two years.


• The FSA issued its largest penalty to date with a £59.5m fine on Barclays in June 2012.


Pursuing cases against individuals


• In the 2011/12 financial year, the FSA levied over £19m of fines on individuals, over twice the amount of the previous year.


Seeking criminal prosecutions for insider dealing and market manipulation


• The FSA has brought an increasing number of criminal cases to trial and secured 20 criminal convictions for insider dealing since 2009.


• This year the two largest and most complex criminal cases to date concluded, resulting in nine custodial sentences.


Getting compensation for consumers


• The FSA secured over £150m in redress for consumers in 2011/12 and also consulted on our first industry-wide scheme to seek redress for consumers who were mis-sold Arch Cru investment funds. This is in addition to the £5.9bn repaid since January 2011 to customers who have complained about how PPI was sold to them, and the agreement we have with banks to review past sales and provide redress on interest rate hedging products.


Taking action against unauthorised business


• Over the past 18 months, the FSA has disrupted approximately 1,675 firms involved in unauthorised investment activity.


• Since 2011, FSA action has closed down 25 schemes that had taken £330m from consumers, securing £33m back for victims, with 13 injunctions to shut down unauthorised businesses and freeze assets; six criminal proceedings begun; and five individuals convicted.

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