The Chancellor is discussing changing the financial services bill so that fines now go to the Exchequer not to mitigate FSA fees. In future miscreant firms’ payments are not to be used to mitigate the financial burden of regulation for the rest.
I think the industry should embrace this principle as long as it is also applied to MAS and the FSCS too. The industry does not stand to benefit from MAS at all – the country does - so the country should foot that bill. But more importantly of course, firms which do not fall on the compensation scheme should not have to pay for those who do. If firms are not to benefit from other firms’ wrongdoing, nor should they be penalised for their wrongdoing either. This new consistent approach will surely be embraced by everyone. Excellent. Glad we all agree on that then.
