The Financial Conduct Authority penalised firms a total of £1.47bn in 2014, according to the 2015 Global Enforcement Review published by Kinetic Partners, a division of Duff & Phelps.
In compiling the annual report, Kinetic Partners analysed publicly-available data from financial services regulators across the UK, US and Hong Kong to determine regulatory trends and their effects on the financial services industry.
The review observed that the total value of fines issued by the FCA has increased by 68% in 2014, up from £474.27m in 2013.
The FCA imposed 46 fines during the 2013/14 fiscal year – down from 51 issued by the FCA’s predecessor, the Financial Services Authority, in 2012/13 and 83 in 2010/11.
The average value of the fines issued in 2014 were two and a half times higher than in 2013, at £36.79m compared to £9.88m in 2013.
This is indicative of a trend in recent years, as the average monetary sanction has increased by more than 1,800% since 2009 when the average FSA fine was £20.7m.
Individuals were fined a total of £2.9m by the UK’s financial services regulator in 2014, down from £4.99m in 2013.
Monique Melis, managing director and global head of regulatory consulting at Kinetic Partners, said: “2014 saw a significant spike in the severity of financial penalties virtually across the board, as regulators have been getting tougher on both firms and individuals.
“However, the averages only tell part of the story as they have been pushed up by a relatively small number of historic fines, mainly relating to Libor and Forex manipulation.
“We are now entering an era of regulatory enforcement in which the ‘new normal’ consists of exceptionally severe penalties and a growing focus on individual bad actors, the aim of which is to impact and change the culture of firms.”