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Treasury set to pocket FSA fines

Money collected from FSA fines could go to the Treasury in future instead of being used to reduce the regulator’s levy on financial services firms, the Chancellor has said.

Speaking in the House of Commons this afternoon, Chancellor George Osborne said the FSA’s announcement it is fining Barclays £59.5m for manipulating the London Interbank Offered rate and the Euro Interbank Offered Rate, demonstrated “systemic failures at the heart of the financial system”.

He said: “Under the previous Government’s regime fines payed to the FSA are used to reduce the annual levy other financial institutions are asked to pay. I am far from convinced that in all case this is the best use of the money. We are considering amendments to the Financial Services Bill that will ensure fines of this nature go to help the taxpaying public not the financial industry.”

“I do not think it is appropriate other financial institutions, the banks, benefit from a lower FSA levy.”

Osborne added that he has asked Treasury officials to look at whether the move could be applied to the FSA’s £59.5m fine.

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  • andrew greenall 29th June 2012 at 7:54 am

    At the end of the day banks are fined for monetary misdemeanors, this is frequently at the expense of the ordinary man. Fine money should be used to help government funds and thus indirectly the ordinary man. Why help the finance industry who probably apply their own form of rip off.

  • Paul 2 28th June 2012 at 11:13 pm

    It would particularly be an issue if the FSA needs a big budget to catch big baddies and this bigger budget is financed in any way by the good guys.

  • Julian Stevens 28th June 2012 at 10:42 pm

    Yet further proof, as if any were needed, of the Great Lie that the FSA is independent of the government. It isn’t ~ it’s a puppet of the Treasury, staffed by civil servants but funded by the private sector, with accountability to nobody. It stinks.

  • Julian Stevens 28th June 2012 at 4:51 pm

    So the FCA will cost all the good, compliant firms even more than the FSA does now. And that’s progress?

  • What a Con 28th June 2012 at 3:26 pm

    hang on a minute…..ok, that better, we have just changed the rules to suit us..The banks will end up with the money in the end

  • Dave 28th June 2012 at 3:24 pm

    Does it really matter whether the FSA or the Treasury uses the money to pay for their golf days and other jollies?

    It will certainly not be spent for the benfit of customers or the taxpayer!

  • Gordon Tate 28th June 2012 at 2:30 pm

    Well, perhaps Mr. Osbourne can then arrange for our FSA fees to be paid by the treasury and the public if they are to receive the benefit of FSA fines. Perhaps the FSA fines can be used to fund the Money Advice Service instead of wasting our money.

  • Tom Shuster 28th June 2012 at 2:29 pm

    Outrageous. The taxpayer pays nothing for the levy on the industry. He can direct the FSA not to apply it to the banks so the rest of the industry gets some respite!

  • David 28th June 2012 at 2:27 pm

    Hello Hello . So its one set of bandits robbing another bandit. No honour amongst thieves then!