Wealthier scoundrels could face higher enforcement penalties from the U.K.’s Financial Conduct Authority (FCA), which is consulting on potential changes to its disciplinary practices — such as imposing heftier penalties on violators with more money to ensure that the sanctions represent a deterrent.
The regulator launched a consultation on a series of proposed changes to its enforcement procedures and penalties — including reforms to its approach to deterrence, changes to its individual penalties policy, and revisions to clarify that the penalty framework applies to violations of the crypto trading rules.
For example, the FCA is proposing to increase the minimum penalty for market abuse violations to £150,000 from £100,000 — and then indexing that new level to inflation — as part of its efforts to beef up deterrence.
It’s also seeking changes to make it clear that it can impose higher penalties on individuals based on their wealth, or their net income, if it determines that the typical penalty won’t represent an adequate deterrent to committing other breaches of securities rules.
“This amendment reflects our current approach and is intended to improve clarity and transparency,” it said.
Additionally, the regulator is seeking to clarify that its penalties for various forms of market abuse — such as illegal insider trading, market manipulation, and abusive short selling — also apply to its new regulatory regime for crypto trading.
The deadline for providing feedback on the consultation is Aug. 10.