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Final flurry: how the FSA hit the warpath in its last days

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by Amy Rowe on Mar 28, 2013 at 15:49

As the final countdown towards the end of the Financial Services Authority begins, we take a look at how the regulator has gone out with a bang, with a flurry of fines in its the first three months of 2013. Here are just some of them.

Prudential

This just in, the FSA has confirmed a £30 million fine for Prudential over its conduct related to a failed bid to buy Asian insurer AIA.

Pru had to dig deep after it failed to tell the FSA of its plans to make an ill-fated $35.5 billion (£23.4 billion) bid for Asian insurer AIA.

At £30 million, it was no small slap on the wrist. However, it wasn't the largest fine doled out so far this year...

RBS

The Royal Bank of Scotland was slapped with fines totalling £390 million over its Libor failings. The FSA fined it £87.5 million while the US Commodity Futures Trading Commission took $325 million (£207 million) and the US Department of Justice fined it $150 million (£95 million).

UBS

Next up is UBS, which in mid-February was fined £9.5 million for failures in the sale of the AIG Enhanced Variable Rate fund. The FSA said UBS's failures led to customers being exposed to an unacceptable risk of an unsuitable sale of the fund.

Swift Trade

Now-defunct Canadian trading platform Swift Trade is snapping closely at UBS’s heels, after it lost its fight against an £8 million fine from the FSA over manipulative trading. This involved causing small price movements that influenced a large number of shares on the London Stock Exchange.

Lloyds Banking Group

Last month the FSA fined Lloyds TSB, Lloyds TSB Scotland and Bank of Scotland a total of £4.3 million for failings in their systems.

These led to up to 140,000 customers receiving delayed payment protection insurance (PPI) redress.

Lamprell

Oil rig maker Lamprell was told to cough up £2.4 million for failing to update the market on its deteriorating finances.

Co-operative Bank

A total of £113,300 was pocketed by the FSA from Co-operative Bank for failure to handle payment protection insurance (PPI) complaints fairly. The company unfairly held back on a significant proportion of PPI complaints, the FSA found.

Nestor Healthcare Group

And Nestor Healthcare Group was hit with a £175,000 fine for failing to comply with the FSA’s rules on share dealing.

Care Asset Management

Lastly, the FSA took £56,000 from IFA Care Asset Management for failing to give its customers suitable advice in relation to the sale of Keydata products.

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