What happened the billions of pounds in fines on banks levied by UK regulators was the subject of our analysis for The Review, the magazine of the Chartered Institute of Securities and Investment. Since the onset of the global financial crisis in late 2007, the FCA and its predecessor, the FSA, have handed down a total of £3.6bn in fines.
Up until 2013, the FCA had kept all income from fines and used it to subsidise the cost of
fees to the banks; until then-chancellor George Osborne announced that fines paid by
banks and others who broke the rules would go to the “benefit of the public and not to
other banks”. Since then, the FCA has transferred approximately £2.9bn to the Government.
It is hard to identify what has happened to the money but analysis of government announcements shows that £424m went to support the armed services covenant while £101 went to museums and galleries. Campaigners for greater transparency in fifnnace told us that fines would be best used to improve standards in that sector and put measures in place to prevent malpractice happening again. The article can be found here (£).