FSA fines reveal retail sector major target

The retail sector is bearing the brunt of FSA fines in an indication it is being targeted by a retail-focused regulator, said compliance firm Wolters Kluwer Financial Services.

According to Wolters Kluwer, fine figures for 2011 point to a regulatory focus on the retail sphere.

The insurance sector is on course to break its yearly record (£7,802,957 in 2010) with fines for the period January to August already totaling £6,920,000 - standing at just under 24% of the running total of fines.

Making up a further 5% of the total fines this year is the mortgage sector, it added.

Nor does the retail banking sector get off lightly - of five major fines dished out in 2011 against both wholesale and retail banks, four were retail based totaling £15,127,559.

"Given the figures so far this year it does seem clear that the FSA's focus is very much retail based," said Wolters Kluwer.

"It may have taken its eye off the larger corporate and wholesale sector and it remains to be seen as to whether the regulator in its current form will be caught napping."

Meanwhile, August's figure of £341,499 represents the second-lowest monthly total for fines this year, the firm added.