FCA 'writes off' £10m in discounts

02 Aug 2013 | 03:39 pm |

The FCA has 'written off' over £10m in 'discounts' on penalties for financial services which have broken rules, according to an analysis by international law firm Pinsent Masons.

Since its inception on 1 April, the FCA has published around 30 enforcement notices, of which almost a quarter have allowed for a discount on the penalty levied.

Discounts are typically applied where the business under scrutiny accepts some degree of wrongdoing at an early stage in order to secure a speedier resolution.

Although this type of early settlement typically reduces enforcement costs for the City watchdog, they have been controversial in the past.

In February this year the Treasury Select Committee said that regulators should be prepared to take a tougher line in settlements with banks found to have broken the rules.

Over recent months financial institutions including JP Morgan and Swinton have been granted discounts of 30% for compliance with regulatory investigations. In total £10,049,549 has been written off as a result.

Monica Gogna, a regulatory expert in the Financial Services group at international law firm Pinsent Masons, says:

"The discounting regime is an effective way of incentivizing regulated businesses to comply with investigations. People may be surprised by the £10m figure though, and will be watching carefully to see whether the recent run of discounts is a 'flurry' or a more subtle shift in FCA policy."

Latest press releases

Show me all press releases

Pinsent Masons advises China Education on the acquisition of King's Own Institute

International law firm Pinsent Masons has advised China Education on the AU$128m acquisition of King's Own Institute in Australia.

Pinsent Masons advises Ebbsfleet Development Corporation on critical land acquisition for garden city project

International law firm Pinsent Masons has advised Ebbsfleet Development Corporation (EDC) on the acquisition of land from Ebbsfleet Investment GP Limited for a landmark regeneration project.

Increase in average prison sentence length for tax evasion - now over two and a half years

There was a 10% rise in the average prison sentence length for tax evasion last year jumping to 2 years 7 months*, up from 2 years 5 months, says Pinsent Masons, the international law firm.

People who viewed this press release also viewed

Show me all press releases

FCA investigations into cryptocurrency businesses jumps

The number of live FCA investigations into cryptocurrency businesses has increased 74% to 87 (FCA, September 2019), up from just 50 in September 2018, says Pinsent Masons, the international law firm.

Pinsent Masons advises on Hong Kong listing of LFG

International law firm Pinsent Masons has advised the Joint Sponsors (Lego Corporate Finance Limited and TUS Corporate Finance Limited) and the Underwriters, on the approximately HK$121 million public offer and placing of shares, and listing on the Main Board of the Hong Kong Stock Exchange of LFG Investment Holdings Limited (“LFG Investment”).

Pinsent Masons Joins Climate Bonds Partners Programme

International law firm Pinsent Masons has joined Climate Bonds Initiative's Partners Programme, an international network mobilising debt markets to tackle climate change and finance green solutions.

For all media enquiries, including arranging an interview with one of our spokespeople, please contact the press office on

+44 (0)20 7418 8199 or 

Location contacts