FCA imposed £1.47bn in fines in 2014 with UBS and Citibank among worst offenders

Citigroup — The FCA imposed a fine of more than £225m on Citibank Reuters

The Financial Conduct Authority (FCA) imposed £1.47bn (€2.04bn, $2.3bn) in fines on companies in 2014, a rise of 68% from the year before, according to a study by Kinetic Partners.

The study showed the average fine imposed on businesses by the FCA in 2014 was £36.79m, two-and-a-half times as much as 2013. Individuals were fined a total of £2.9m in 2014, down 41.9% from 2013.

Monique Melis, managing director of Kinetic Partners, a division of financial adviser Duffs and Phelps, said: "2014 saw a significant spike in the severity of financial penalties virtually across the board, as regulators have been getting tougher on both firms and individuals. However, the averages only tell part of the story as they have been pushed up by a relatively small number of historic fines, mainly relating to Libor and Forex manipulation."

Kinetic Partners found countries such as the US and Hong Kong saw an increase in regulating fines, although none of them were as stark as in the UK.

The total amount of fines imposed on individuals was down but Kinetic Partners reported the FCA fined the first individual over Libor rate-rigging in January 2015.

The 10 biggest fines by the FCA in 2014, according to the regulator's website:

UBS for £233,814,000. "For failing to take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems in relation to G10 spot FX voice trading in London."
Citibank for £225,575,000. "For failing to take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems in relation to G10 spot FX voice trading in London."
JPMorgan Chase Bank for £222,166,000. "For failing to take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems in relation to G10 spot FX voice trading in London."
The Royal Bank of Scotland for £217,000,000. "For failing to take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems in relation to G10 spot FX voice trading in London."
HSBC Bank for £216,363,000. "For failing to take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems in relation to G10 spot FX voice trading in London."
Lloyds Bank and Bank of Scotland for £105,000,000. "For serious misconduct relating to the Special Liquidity Scheme, the Repo Rate benchmark and the London Interbank Offered Rate."
Royal Bank of Scotland, National Westminster Bank and Ulster Bank for £42,000,000. For breaches of Principle 3 between 1 August 2010 and 10 July 2012 ("Relevant Period").
Barclays Bank for £37,745,000. "For failing to properly protect clients' safe custody assets worth £16.5bn."
HomeServe Membership for £30,647,400. "For mis-selling insurance policies, failing to investigate complaints adequately, the board being insufficiently engaged with compliance and senior management being reluctant to address customer risks."
Barclays Bank for £26,033,500. "For failing to adequately manage conflicts of interest between itself and its customers as well as systems and controls failings, in relation to the Gold Fixing."