FSA made four sets of new rules at its February board meeting:
- the DEPP (financial penalties) Instrument 2010 amends DEPP, EG and the RCB Sourcebook from 6 March to change the way FSA calculates fines. Fines will be linked more closely to income and based on up to 20% of a firm's revenue from relevant business. For individuals, the fine will be based on a minimum of £100,000 for serious market abuse cases, and up to 40% of the individual's salary and benefits otherwise. The new rules also deal with when FSA may reduce a fine and when it can publicise enforcement action in criminal cases. Many respondents to FSA's consultation challenged the new thresholds but FSA has implemented them anyway although it appreciates more of its rulings may be challenged now;
- the Funds of Alternative Investment Funds Instrument 2010 amends the Glossary and COLL from 6 March to give more investment powers to retail authorised collective investment schemes that are funds of alternative investment funds;
- the Alternative Finance Investment Bonds (Consequential Amendments) Instrument 2010 amends the Glossary, COLL, LR and PERG from 26 February to make changes consistent with the new regulatory regime under FSMA for alternative finance investment bonds (see FReD This Week 22 January 2010); and
- the LR (Amendment No 4) Instrument 2010 amends LR from 6 April to implement the final part of the Listing Review.