FSA imposes largest ever fine on an individual.

Abstract

Purpose--The purpose of this paper is to explain the reason for the FSA's largest-ever fine on an individual, for the FSA's continued emphasis on credible deterrence, and the likelihood of significant fines as a matter of course.

Design/methodology/approach--The paper describes Simon Eagle's role in a share ramping scheme, the FSA's findings in the Eagle case, and the upward trend in penalties imposed by the FSA in recent years.

Findings--The regulator has shown that it does not shy away from levying swingeing fines on individuals as well as firms, particularly in the case of those deemed not to have co-operated.

Practical implications--In light of these developments, both individuals and firms should pay heed to the potentially heavy consequences they face should they fall foul of the rules.

Originality/value--The paper provides practical guidance from experienced securities lawyers.

Keywords Financial services, Securities, United Kingdom, Crimes

Paper type Technical paper

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On May, 20 2010 the UK Financial Services Authority (FSA) announced that it had fined Simon Eagle, former chief executive of stockbroker SP Bell, [pounds sterling]2.8 million for market abuse and banned him from working in the financial services industry. The fine comprises a [pounds sterling]1.5 million penalty and disgorgement of [pounds sterling]1.3 million profit and is the largest ever imposed on an individual by the FSA.

Background