Deterrence is key, says FSA

LONDON – Effective deterrence against misconduct, a focus on individual senior management responsibility and higher financial penalties are key priorities for the UK Financial Services Authority (FSA) and its enforcement team, according to Margaret Cole, director of enforcement. She said in a mid-January speech: "To achieve effective deterrence, wrongdoers must not only realise that they face a real and tangible risk that they will be held to account, but they must expect a significant penalty.

"Generally, cases against individuals are hard fought, at many practical levels harder to prove, take longer to resolve and are less likely to be settled...nonetheless, we are committed to ensuring that appropriate cases against senior management are pursued robustly and with sufficient resource," she said.

Cole said when the "carrot" approach did not work, financial penalties would be used against