The FSA’s new policy on assessment of enforcement penalties for corrupt and fraudulent acts is now in force and applies to conduct occurring after 6 March 2010. It is expected to lead to a three-fold increase in the level of financial penalties. For example, individuals involved in market abuse cases could receive a minimum financial penalty of £100,000 and be required to disgorge profits.
Companies should also note that the FSA is using existing tools and investigation approaches more aggressively, frequently resorting to multiple arrests in cases of suspected insider dealing and injunctions to freeze assets. Self reporting and good cooperation with the FSA could lead to civil sanctions being selected instead of criminal. Those who are uncooperative and resist FSA investigation and action are more likely to be subject to criminal sanctions.