The interaction between FSA enforcement action and compliance culture: A help or a hindrance?

Abstract

The use of public discipline by the FSA, usually accompanied by the imposition of a fine, has become familiar to readers of the financial press. To date the assumption has been that the use of publicity assists the FSA in achieving its objective of encouraging the development of a compliance culture. However, the time that many cases take to reach a conclusion can significantly weaken the impact upon other firms’ behaviour and could deter people from making investments. The FSA must ensure that its public discipline is proportionate to the offence and in order to have maximum effect should be delivered quickly.

Citation

Turner, R. (2005), "The interaction between FSA enforcement action and compliance culture: A help or a hindrance?", Journal of Financial Regulation and Compliance, Vol. 13 No. 2, pp. 142-145. https://doi.org/10.1108/13581980510621938