From the Regulators

Global regulators are focused on changing behaviours and non-financial sanctions are on the rise

By James Langton |

Market conduct enforcements are back on the rise according to data from Corlytics, a Dublin-based regulatory risk intelligence firm.

The value of penalties imposed by global regulators for securities market enforcement almost reached US$1.9 billion through the first three quarters of 2017, up from US$630 million for the same period in 2016.

The bulk of fines are imposed in the U.S. "Since 2012, of the US$26.4 billion levied in market conduct fines worldwide, 80% of all fines have come from U.S. regulators," Corlytics says in a news release.

Seven European banks were responsible for 45% of all U.S. fines over the period, it adds.

In addition to monetary sanctions, the Corlytics data show a similar increase in non-financial consequences. For example, global regulators have levied 139 market bans for senior executives since 2012, 46 specific activities suspensions, 11 market suspensions, and 28 jail terms.

"Making individuals responsible for their own actions through threat of penalties is becoming a favoured mechanism for regulators to improve compliance with market conduct regulation," says John Byrne, CEO of Corlytics, in a statement. "We can clearly see that both market bans and injunctions are favourites for regulators."