Record low FCA fines in 2016 were an anomaly

Author: Lizzie Meager | Published: 31 Jan 2017

The remarkably low fines imposed by the UK’s financial services regulator in 2016 – just £22.2 million ($27.5 million) – were an anomaly and not a reflection of policy change.

In 2016, the Financial Conduct Authority (FCA) handed out just 23 penalties - the lowest total since 2007, when its predecessor the Financial Services Authority (FSA) was responsible – accounting for less than three percent of the fines imposed in 2015.

"It was a surprise, but what’s missing are the marquee enforcement actions that have hugely inflated the figures in previous years, the FXs and Libors," said Ben Kingsley, partner at Slaughter and May in London. "But I have no doubt that we’ll see eight and probably nine figure fines again."

Deutsche Bank's £163 million fine announced this morning shows the regulator is not backing downIn fact the regulator has already beaten its 2016 total in one enforcement action....