In the same week Jersey’s JFSC introduce financial penalties powers it has been reported that the current era of record regulatory fines has been branded “the new normal” as the level of penalties dished out by the FCA hits a total of £1.5bn.

The figures have been published as part of the latest Global Enforcement Review from Kinetic Partners, part of consultancy firm Duff & Phelps.

It found that the number of fines in 2013/14 fell from 51 issued by the former FSA to 46. But the average value of fines was driven two and a half times higher in 2014, from £9.9m to £36.8m.

Fines against individuals totalled £2.9m in 2014, compared to £5m the previous year.

Kinetic Partners managing director and global head of regulatory consulting Monique Melis has been quoted as saying:

• “2014 saw a significant spike in the severity of financial penalties virtually across the board, as regulators have been getting tougher on firms and individuals.”

• “average fines have been driven up by enforcement action relating to Libor and foreign exchange manipulation”.

• “We are 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.”

With all this in m kind its clearly time to act and protect regulatory risk….please call me (00441534626841) or email Mathewbeale@comsuregroup.com to learn how we can assist you manage your risk.

From 23 June 2015, the Jersey Financial Services Commission (JFSC) will have the power to impose financial penalties on regulated businesses of up to £4 million, for significant and material breaches of

• the Codes of Practice, including
• contraventions of the Handbook for the Prevention and Detection of Money Laundering and the Financing of Terrorism.

The proceeds from the financial penalties will be used to reduce, or mitigate required increases in the fees for regulated businesses, effectively ensuring that in the future, those companies that invest in compliance with Jersey’s regulatory standards will no longer have to carry the financial burden of dealing with those companies that fail to comply with regulatory standards.

The enabling legislation,

• the Financial Services Commission (Amendment No. 6) (Jersey) Law 2015 came into force as from the 20 March 2015 and
• the Financial Services Commission (Financial Penalties) (Jersey) Order 2015, that sets the financial penalty tariff, will come into force as from the 23 June 2015.

The process that will be adopted by the JFSC in dealing with cases that may be subject to a financial penalty is published here. http://bit.ly/1FCHpLA

Financial Services Commission (Amendment No. 6) (Jersey) Law 2015 = http://bit.ly/1NdOYhl

Financial Services Commission (Financial Penalties) (Jersey) Order 2015= http://bit.ly/1QRiCz9